ALF
04/08/2014 13:00
GENERAL
REL: 1300 HRS Allied Farmers Limited
GENERAL: ALF: Debt Settlement Agreement
[email protected]
4 August 2014
DEBT SETTLEMENT AGREEMENT
Allied Farmers Limited (ALF) is pleased to announce that it has entered into
an agreement to fully and finally settle all outstanding debts and obligation
to its first ranking secured lender, Crown Asset Management Limited (CAML).
The Allied Group has on demand loan liabilities from CAML, and CAML and ALF
have agreed to fully satisfy this liability by Allied Group immediately
paying $1 million in cash to CAML (tranche 1), and an additional $1 million
on or before 3 October 2014 (tranche 2).
Additionally, the holders of the bonds that were issued by AFRL on 13
September 2013 (010 Bonds) have agreed to extend the maturity date for the
010 Bonds from 29 August 2014 to 29 August 2015.
ALF will fund tranche 1 by selling 10 percent of the shares that its wholly
owned subsidiary, Allied Farmers Rural Limited (AFRL), owns in NZ Farmers
Livestock Limited (NZFL) (Sale Shares) for $1 million, and proposes to fund
tranche 2 by issuing non-listed bonds in AFRL with a three year term on or
before 30 September 2014. If tranche 2 is not paid by 3 October 2014, CAML
will, as it has for some time now, continue to reserve its rights.
The other significant shareholders in NZFL, Stockmans Limited and Agent
Company Limited, are the purchasers of the Sale Shares. On completion, AFRL
will retain 57 percent of the shares in NZFL.
NZX Regulation has granted a waiver from Listing Rule 9.2 in relation to the
sale of the Sale Shares and the extension of the maturity date for the 010
Bonds. Further details of the transactions subject of this announcement are
set out in the NZX waiver decision which has been released together with this
announcement.
Garry Bluett
Chairman
End CA:00253451 For:ALF Type:GENERAL Time:2014-08-04 13:00:05
