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- Release Date: 20/12/13 11:59
- Summary: GENERAL: ALF: Further Significant Settlement for ALF
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ALF
20/12/2013 09:59
GENERAL
REL: 0959 HRS Allied Farmers Limited
GENERAL: ALF: Further Significant Settlement for ALF
20 December 2013
FURTHER SIGNIFICANT SETTLEMENT FOR ALF
Allied Farmers Limited (ALF) is pleased to announce that it has conditionally
agreed a settlement of an obligation owing to Speirs Group Limited (Speirs).
This conditional agreement follows earlier successful resolutions with the
Inland Revenue Department and another major creditor, and other restructuring
moves in a busy 2013 calendar year.
As described in Note 19 to ALF's 2013 Financial Statements, the obligation
relates to a 2008 put and call option contract with Speirs. The obligation is
recognised as a $2 million liability in ALF's Balance Sheet.
Speirs exercised its put option on 26 July 2013 and advised that it requires
a payment of $2,000,000 or the transfer of an investment property that was,
but is no longer owned, by ALF's wholly owned subsidiary, NFA Limited ( in
Liquidation) (NFA).
Speirs and ALF have agreed to settle the obligation by:
1. ALF issuing to Speirs by way of a private placement of 14,678,487 new
ordinary shares. Based on the 19 December 2013 closing price of ALF's shares
of $0.036, this represents approximately $528,000 of value.
2. ALF agreeing to pay to Speirs $500,000 on 30 April 2016. This payment will
be unsecured and non- interest bearing.
Because Nelson Speirs is a director and shareholder of Speirs, and, until
recently, a director of NFA, the settlement is a related party transaction
and settlement is therefore conditional on ALF obtaining a waiver from NZX
Regulation in relation to the settlement. Settlement is also conditional on
Speirs obtaining shareholder approval by way of a Pre-break Announcement or
shareholder meeting (if required) and also obtaining any requisite NZX
Regulation waivers.
The Directors of Allied Farmers consider that this settlement is a good
outcome for the company and its shareholders and is yet another significant
successful step in putting the company on a more stable financial footing.
Garry Bluett
Chairman
[email protected]
End CA:00245493 For:ALF Type:GENERAL Time:2013-12-20 09:59:15
