Allied Farmers chief ready for grilling after Hanover deal

Allied Farmers outgoing managing director Rob Alloway. Photo / Dean Purcell

Allied Farmers directors will front up to shareholders tomorrow in the company's first annual general meeting since undertaking the debt for equity swap deal with Hanover last December.

But it's uncertain how many investors will make the trip to the company's home town of Hawera.

"We could get anywhere from 100 to 1000 [shareholders]," outgoing managing director Rob Alloway said.

Alloway said the company had considered holding the meeting in Auckland but had settled on keeping it in Hawera because that was still where the largest number of its shareholders were based.

While the Hanover deal had brought a large number of new shareholders on board they were spread throughout the country, he said.

However, Alloway said the AGM would be moved away from Hawera next year.

But he is prepared to face up to tough questions of the company which has had to write down the Hanover assets by hundreds of millions of dollars and seen the collapse of its finance company Allied Nationwide.

"This is a business that has a number of issues. But it has also got a number of issues that have been addressed as well."

Alloway said the company had restructured its balance sheet and reduced debt during the year.

While the write-down of Hanover's former loans and assets was very difficult - "they are what they are."

Alloway said the write-downs were not too dissimilar to those being undertaken by other finance companies.

The meeting will also put to the vote the re-election of existing director Garry Bluett and new director Jeff Keenan.

Alloway said Keenan had been put forward by another shareholder. Both Keenan and the shareholder were former Hanover debenture holders, and had the support of the board.

"We expect he will join the board."

Alloway said there had been a lot of criticism of the Allied board, but Keenan had been the only new director put forward for election.

Keenan is a 69-year old former senior executive who presently runs a 40-acre sheep farm near Levin.

Alloway said the board may also have some news of his replacement. He is to finish up as managing director at the end of the year, although he will remain on the board.

Alloway said the board would meet after the AGM to talk about the new chief executive.

"That is something the board is considering at the moment."

He said despite Hanover's announcement on Friday that it would pursue legal action it was business as usual for Allied.

Alloway said the company was focused on getting its rural business up to speed and there were already signs it was picking up.

"Things are certainly trending better than they were last quarter. We are confident we have turned the corner in the rural business."

Allied shares closed on 2.1c on Friday.