Allied Farmers has received some break from its banker, Westpac, which will expand the company's banking facility, until late September.

The bothered finance and rural services company's loan and overdraft facilities with Westpac ran out on Thursday.

The company says that discussion between it, Westpac and another lender are in process; with Westpac also bearing in mind, a number of debt retirement and restructuring proposals.

Allied Farmers' share price fell by 0.1c to 3.9c on Thursday, after it declared its refusal to reimburse $5 million that it owes to Hanover Finance, and said that it's taking into consideration legal action against some of Hanover's directors and executives.

Allied Farmers, which purchased Hanover's assets from possessors, Eric Watson and Mark Hotchin for $396 million in December, is placing a charge on Hanover of breaching their accord by making transactions before the sale was finished.

Chief Executive, Rob Alloway says that the breaches are valued at no less than the $5 million, which it was supposed to pay on Wednesday, but would not say by how much.

Taking into account all of it, shares in Allied Farmers have lost no less than three-quarters of their value, ever since the month of December.