The beleaguered Allied Farmers Ltd. is reported to be in talks with the trustee of its finance unit Allied Nationwide Finance, concerning a disputed violation of its financial ratios.

Besides, the Company has delayed his plans over the previously announced capital raising. The Company has announced to stick back to it following a reassurance from the subsidiary Allied Nationwide Finance, to fully comply with its trustee's concerns.

The partially underwritten capital raising worth $19.3m was earlier slated for August 3.

On Friday, the Company revealed that Guardian Trust had delivered a notice to Allied Nationwide Finance relating the violation of its trust deed finance ratios, giving it a 14 day time to give an explanation.

However, the Board and management of the Company had different views compared to the trustee's, but announced to halt the finance for the Company's prospectus.

The trustee's concerns are expected to be resolved very soon, posted Allied Farmers Chairman John Loughlin today.

"The Trustee is being cautious and we just need to work with them to ensure they have the level of comfort they need to allow Allied Nationwide's current prospectus to be reinstated, therefore better positioning Allied Farmers to go ahead with the prospectus for the planned capital raising", Mr. Loughlin explained.