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Allied Farmers Confirms Westpac Debt Reduction

Contributor:
Fuseworks Media
Fuseworks Media
Allied Farmers Confirms Westpac Debt Reduction

Allied Farmers today confirmed its outstanding term debt with Westpac is now less than $1.65 million following the receipt of funds from the Maison Reeves Condominiums (MAC Reeves) receivership in the United States.

The second distribution from the receivership was received overnight and has been used to further reduce the company's term debt position with Westpac which now stands at just $1.65 million, down from $19.5 million as at 31 December 2009.

Last week proceeds from the early settlement of the sale of the Five Mile development in Queenstown were also used to significantly reduce the term debt position with Westpac from $14.2 million to $5.4 million.

Allied Farmers, Managing Director Rob Alloway said that the slight delay in receipt of the funds was to allow further discussions with the receiver over distributable amounts to be concluded, which has resulted in an increase from the expected $3.5 million to $3.75 million. He said a further figure of around $7 million from final sales of the remaining condominiums in the Maison Reeves luxury development in Beverly Hills was expected before the end of the year.

"We are continuing to make good progress on reducing debt and restructuring the business. While this is taking some time I think all stakeholders will appreciate that reducing senior debt in the current environment is an appropriate use of funds and provides a clearer picture from which we can now move forward with some confidence" said Mr Alloway.

Allied Farmers expects to make further positive announcements to the market in relation to its debt and banking before the end of September 2010.

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