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- Release Date: 25/02/13 12:02
- Summary: GENERAL: ALF: IRD Statutory Demand
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ALF
25/02/2013 10:02
GENERAL
REL: 1002 HRS Allied Farmers Limited
GENERAL: ALF: IRD Statutory Demand
25 February 2013
IRD Statutory Demand
Allied Farmers Rural Limited (AFRL)*, a wholly owned subsidiary of Allied
Farmers Limited (ALF), has received a statutory demand from the Commissioner
of Inland Revenue (IRD) for outstanding debts totaling $3.7 million.
The receipt of the statutory demand is a further enforceable event of default
under ALF's secured loan facility. ALF's secured lender, Crown Asset
Management Limited (CAML), has indicated that it is continuing to reserve its
rights and remedies. The statutory demand requires payment or a compromise
within 15 working days, otherwise the IRD can choose to commence liquidation
proceedings.
AFRL has been in dialogue with the IRD for some time on presenting a proposal
to repay the debt. IRD has indicated that any proposal would require CAML
approval. AFRL was in the process of discussing a proposal with CAML, and
advised IRD on 14 February 2013 that these discussions were ongoing. AFRL is
therefore surprised that the statutory demand is dated 14 February 2013
(although not served until now) and AFRL was not given the opportunity to
provide the IRD with a CAML supported proposal before this action was taken.
AFRL believes that it will be able to complete a proposal for repayment of
the debt on terms satisfactory to the IRD and with the support of CAML, given
that the continued trading of AFRL would ultimately result in a superior
return for both the IRD and CAML.
* Allied Farmers Rural Limited forms part of the Allied Group over which
CAML has first ranking security, and is subject of the statutory demand. NZ
Farmers Livestock Ltd does not form part of this CAML security group, and is
therefore not affected by this demand from the IRD or any enforcement action
that may be taken by CAML.
End CA:00233395 For:ALF Type:GENERAL Time:2013-02-25 10:02:03
