Trustee details risks of Hanover proposal

United Finance investors have been given no indication from their trustee of the least-worst option as they consider Hanover Group's proposed debt for equity swap with Allied Farmers.

However, Louise Edwards of Perpetual Trust has once again reminded the investors they face "significant potential downsides, risks and uncertainties" whichever way they vote on the proposal.

Edwards has written to United Finance investors providing them with information "to make an informed decision" on the transaction, which will subject to a vote on December 16.

She instructs them to consider three scenarios; the proposed transaction going ahead, the proposal failing and Hanover subsequently going into receivership, and finally the proposal failing and Hanover's current debt restructuring plan continuing as it is.