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Allied Farmers CEO Rob Alloway to step down in December; deals likely within weeks to reduce debt
Allied Farmers Chief Executive Rob Alloway has announced he will step down as Chief Executive in December and that deals are likely in the next few weeks to substantially reduce the group's debt.
Alloway is the group's major shareholder and was the driving force behind the deal to buy Hanover Finance's loan book from its debenture holders with more than 1.9 billion new shares new shares worth 20.7 cents. The price of those shares has since collapsed to 2.5 cents in the wake of revelations the Hanover loan book was worth a fraction of its valuation at the time of the. Allied Farmers' finance company Allied Nationwide Finance was put into receivership on August 20.
Allied Farmers now owes the receivers of Allied Nationwide Finance tens of millions of dollars and is scrambling to refinance or restructure loan facilities worth NZ$19 million with Westpac. See more detail in Gareth Vaughan's story here and here.
Alloway would remain on the board of Allied Farmers while a search for a new CEO is undertaken before December, Allied Farmers said.
“The time was right to step down from the hands-on, day-today role of running the business as the restructuring process which began about a year ago was nearing completion,” Alloway said in a statement.
Allied Farmers' board said it acknowledged Alloway’s "strong and insightful leadership during a period of tremendous change, and said that whilst they were disappointed Mr Alloway was changing his role from an executive, his ongoing involvement as a director means Mr Alloway will continue to contribute to the Company."
“With the restructuring process now coming to an end, and several asset realisations likely in the short term, the company will be in a different position in December when I step down," Alloway said.
“My key goal was to establish a more stable financial platform and normalise the company’s banking and other commercial arrangements," he said.
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"We are expecting this process will be completed in the next few weeks leaving the business with substantially reduced senior debt and feel it is right to now give the Board time to identify a new CEO to take the company forward after a challenging period.”
Alloway said staff, suppliers and shareholders had been very patient and that patience and loyalty had given the Board and management "the time they needed to navigate through a difficult process."
“We’ve had to make some very tough decisions along the way but we are now close to reaching the stable ground we need to rebuild what I still believe will be a very sound and respected rural services business.”
29 Comments
What a laugh! What would
What a laugh! What would have happened if he had done a bad job? I bet the head hunters are now chasing him to run other companies just as successfully as he has at Allied. Take a look at the ALF share chart it is straight down from 190c in 2006 to 2.5c today. Great job Rob, you certainly added value to this business.
Complete rubbish
Complete rubbish
Rob, I would rather rely on
Rob,
I would rather rely on the soccer world cup occtapus than following you in the future. Who else could put a positive spin on an absolute disaster. Shame Shame Shame !!
Restructuring or
Restructuring or destructuring ?
well that expected with what
well that expected with what we are hearing in Taranaki, clients asked to pay back stock loans by the end of the month and delays in paying out proceeds from livestock transactions
Rob, Youve been Hotchined
Rob,
Youve been Hotchined and Watsoned.... thanks for coming.
Come on guys. Rob did his
Come on guys. Rob did his very best to "establish a more stable financial platform and normalise the company’s banking and other commercial arrangements".
The fact that Westpac want their money back pronto, BNZ want out of the securitisation scheme and ALF owes millions to the ANF recievers doesnt reflect how (un)successful Robs contribution was. ALF is now the laughing "stock" of the NZX.
With Loughlin and now Rob dropping out who will get the new role of CEO and pull all of the strings? A look at the surviving board members only points to one person. That person may get Resimac to buy in and maybe even a rights issue may eventuate. If the rights issue isnt a goer, then ALF is surely doomed!
Having heard Alloways comments on the radio about the mistakes the Pre-Alloway board made, maybe the whole board should walk and Sandy Maier could take on the leadership.
Shareprice spike today on the news!
That reminds me that ALF very
That reminds me that ALF very nearly got into the NZX50. Now that would have shown how robust our capital markets are.
I heard that A Hubb is
I heard that A Hubb is getting the job....
I think he can see the
I think he can see the writing on the wall (of his making) and is trying to get the hell outa there before the implosion. If he's far distant enough a lot less shit will land on his head.
Whats the bet he doesn't even stay on as a director?
Are they technically insolvent now or will that be next month or the month after?
Is he going to work at Alan
Is he going to work at Alan Hubbard's new finance company called South Allied Canterbury Knights (or SACK for short).
Loughlin wait for me. Don't
Loughlin wait for me. Don't leave me to face the music...LOUGHLIN..LOUGHLIN.. WAAAAAA Don't leave me, Im scared. All these people want their money back and I don't know what to dooooooo... Bugger this Im out of here.
Another 'Westpac Milestone'
Another 'Westpac Milestone' passes. Perhaps Alan and Rob could establish a new finacial body; perhaps 'RobHard Investments' would be a suitable acronym? I left because my job was done? Please spare us. I wouldn't give him a job running a tap.
Thanks bernard - you've done
Thanks bernard - you've done a great job at building a community based on personal attacks, hatred, and xenophobia. Last visit ever to interest.co.nz - check.
Goodbye Rob Alloway..... and
Goodbye Rob Alloway..... and dont come back !!
Personally I think Allied did
Personally I think Allied did a lot of damage to Hanover investors. If they hadn't taken over Hanover, Hanover would have gone into receivership, and investors possibily may have got back up to 40-60% of their money back. However now 90% of Hanover investors who haven't sold their shares, have shares that are worth very little, if they did all try to sell them, and possibily nothing if the whole thing goes into receivership.
They should have just left it alone, it was a huge gamble at Hanover investors expense. The the top people who sold the deal to hanover investors have now also gone, what does that say to Hanover investors. I really hope there is a serious government enquiry into this.
Agreed. They also made a
Agreed. They also made a great job of wealth destruction for the ALF shareholders. The entire board and management are to blame for this, not just Alloway and Loughlin. To think that these people are paid to be on the board and make these decisions. If Alloway and Loughlin put the deal together, what input did the others have. With both of them giving up, who is going to provide the leadership for this company?
If the rights issue doesnt get off the ground then the company is stuffed.
ALF by itself was pretty much
ALF by itself was pretty much gone without any deal, so it's worth to shareholders was pretty much gone with or without Hanover. They purchased Hanover in the hope they would get a GG, and raise their credit rating, which then would mean they would have survived for at least a few years. Someone made major cockup. They will say that the Hanover assets weren't worth as much as they were told, but they should have done more research on their true value.
I wouldn't have liked his
I wouldn't have liked his job...$75m debt, no operating earnings, an Aussie bank who wants its money back and now, a finance company without a government umbrella, every broken and crooked property developer owes you money, and 20000 screaming shareholders. Easy to sail a boat in fair weather but try it in a cyclone...open your eyes people
Finally an intelligent post
Finally an intelligent post on this subject.Tennis score's on the money thanks to AF teams hard work. W & H aren't scot free at all. Good on Rob Alloway for stepping up & doing a superb job of unraveling the mess, through a difficult period for both H investors & AF. Who else was ever going to find out the facts & tell them exactly as it is over time when slowly uncovered. Fact 75%+ voted M over L in 1st place. Fact 75%+ voted AF give H investors an opportunity to cash out anytime after their 75%+ vote saw them vote with a 'get out of jail card for free' by way of shares that sell daily for real money. Seems cats now crying over spilt milk & kittens clawing out at anyone, doubt anyone wants the ungrateful role of CEO or MD after these nasty blogs. Anyone who thinks AF paid too much for H didn’t read the terms of the deal. I still see it as a all round smarter deal than a fire sale of H under L.
Last time I'm visiting this site too, I agree personal attacks & hateful, uninformed blogs not very impressive on interest.co site.
.
i have never seen a ship go
i have never seen a ship go down so fast, yet the captain and first mate jumped ship to survive another day,pitty shareholders cant say the same.
apparently Rob's remuneration
apparently Rob's remuneration package was eye watering, and not withstanding he made an a substantial investment in allied, his take home pay more than made up for it. Could be a good question for Bernard to follow up on.
I see in the newspaper
I see in the newspaper that Rob Alloway wants to be Chairman now.
Having achieved less than 10% realisation on the assets purchased from Hanover (using the debenture holders own funds), it is laughable that he would consider putting himself forward to the shareholders that he has let down so badly.
Virtually nothing that was promised from the acquisition has been achieved. The finance company was starved of long promised capital and left to fall into the Crown's hands, Westpac's pitiful bank facility has yet to be repaid after many months of wrangling, and the shareholders are left wondering quite what was happened to the "value enhancing" transformation that was promised to them.
It is time to hand Allied Farmers over to someone with the ability and experience to sort the place out. The bluster, false promises and cheap grandstanding of recent times should be no more. That is the least the poor investors deserve from this shambles.
Glad the capital that was
Glad the capital that was left didn't go into Nationwide - those idiots would have lost it too! Wasn't Nationwide a Hanover company which Allied bought a while back?
"It is time to hand Allied
"It is time to hand Allied Farmers over to someone with the ability and experience to sort the place out." - Well, looks like they're screwed.
I'm looking forward to the
I'm looking forward to the Allied Farmers AGM. They should be selling tickets in advance! I wonder if John Loughlin will make an appearance?
Btw, they're due to file
Btw, they're due to file their annual accounts to the NZX this Friday (10th).
Latest news from the rural
Latest news from the rural supplies stores of Allied Farmers:
The stores are all on stop credit, a far cry from Alloways comments of running the business "Lean and mean". The comment that they are not stocking any of the lower profit lines are also laughable, considering that they don't have any Calf Milk Powder during the busiest time of the season. They cannot purchase Palm Kernel, they cannot buy bulk dairy meal, they also have just had all their fuel cards placed on stop.
Just a matter of time until it all crumbles down...
Thats sad we need competition
Thats sad we need competition for PggW