Allied Farmers has confirmed its negotiations with Westpac New Zealand and one other lender. Allied Farmers has also said that the negotiations are about getting the bank facility extended. The previous agreement between, Allied Farmers and Westpac is expiring on July 1.

The Company had taken the control over Hanover Finance and United Finance assets in the last year.

Allied Farmers are working on the agreement with its principal banker for the new fiscal year. At present, the amount from Westpac loan facility is $ 16.5 million. Last year, this amount was $21 million.

A general security agreement secures the assets of Allied Farmers’ charging group. These assets include the rural business of Allied Farmers and also, the assets created by the acquisition of Hanover Finance and United Finance.

"The Allied Farmers business has a number of moving pieces at the moment with asset sales, settlements, banking and financing arrangements”, said Chairman, John Loughlin.

The Chairman also said that there are many issues to be sorted out and management of the Company is leaving no stone unturned for that.

The shares of the Company dipped by 2.3% and there has been a decrease of 61% in the shares of the Company in the full year.