Allied settles with Hanover

Mark Hotchin and Rob Alloway. File photo / Paul Estcourt

Allied Farmers says it has settled with failed finance company Hanover over a disputed $5 million payment.

Allied, which bought the loan book of Hanover, refused to pay the finance company the sum because it had substantial claims against the business after the purchase.

However, yesterday Allied said Hanover had agreed to forgo its entitlement to the payment. In turn, Allied agreed to withdraw allegations Hanover disposed of some of its assets on "uncommercial terms". Allied said these statements were without merit and unproven.