Allied Farmers Limited, a New Zealand rural services and financial group, informed its investors that the Company plans on raising a capital of around $19.3 million, in order to boost the Company's financial position and to repay its debt for Westpac Bank.

Despite the capital raising, Allied Farmers will not stop its in-progress divestments of assets. This offer was associated by McDouall Stuart's confirmation of the Company's ability to raise more than $9 million, through this single act.

Allied Farmers Chairman, John Loughlin, justified the offer saying, "In a market in which demand and finance for property development was flat, realizing good value from further asset sales would continue to take time".

Subsequent this announcement, the Company lost 26% of its share value, declining to reach a price of 4 cents a share. This decline was not the first in the year of 2010, for the Allied Farmers' shares has already gone under, in the past 6 months by 51%, as a result of firm being forced to cut down the loans it took from Hanover Finance and United Finance. However, at the same time, the Company was granted an extension for its loan facility from Westpac Bank.