Allied Farmers has agreed a settlement with the Inland Revenue resulting in a "confidential repayment plan" relating to a previously disclosed $4.2 million tax liability.
"As a result the Inland Revenue liquidation hearing will be discontinued," an ALF statement to NZX said.
Also, a subsidiary of ALF has now completed a bond issue, which has raised $600,000.
"Some of the proceeds of the bond issue have been used, together with proceeds of a draw down of funds from an existing funding facility with its secured lender, Crown Asset Management Limited to fund the initial instalment of the [IRD] repayment plan," ALF said.
Also as a result of the IRD agreement ALF had now agreed a "confidential settlement" with a creditor that had served a (now expired) statutory demand for an outstanding obligation plus interest totaling $540,000.
Further details regarding the bond issue are contained in a waiver notice issued through the NZX.