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ALF
27/04/2012 09:10
GENERAL
REL: 0910 HRS Allied Farmers Limited
GENERAL: ALF: ALLIED UPDATE - ALF
27 April 2012
ALLIED UPDATE
Allied Farmers Limited (ALF) today announced that the (confidential)
purchaser of an overdue loan from ALF's asset management services division
has received a substantial repayment of the amount outstanding under the
loan.
As referenced in Note 40 of ALF's 2011 Financial Statements, ALF has
guaranteed to the purchaser of the loan that $7,000,000 of proceeds will be
collected from the loan, and that any shortfall in the proceeds may be
claimed under the guarantee.
ALF is pleased with this latest development, as the loan has been outstanding
for many years and has been the subject of complex litigation. At this point
in time it is unclear how much of the remaining unpaid amount of the loan
will be repaid, or the amount that will be payable under the guarantee.
However, having reviewed the guarantee obligation, ALF has determined to
increase the currently held provision for the guarantee obligation by
$569,000 to reflect the maximum potential exposure under the guarantee.
ALF will provide a further update upon receipt of further information.
End CA:00222255 For:ALF Type:GENERAL Time:2012-04-27 09:10:22
