Allied Farmers says Westpac has given it some breathing room by extending the terms of a bank loan due to expire today, July 1, to September 24.
The finance and rural services company said, however, the extension was subject to a range of unspecified terms and conditions.
Allied, which acquired the finance interests of Hanover Finance last December, said last week it owed Westpac NZ$16.5 million and also had a NZ$2.5 million overdraft facility with the bank. Both were due to expire on July 1. The company says negotiations continue with Westpac and another un-named lender proposing to offer funding under a shared security arrangement.
"In addition, Allied Farmers and Westpac have also been considering a number of debt retirement and restructuring initiatives that would have a positive impact for the company," Allied said.
"As this process is taking longer than expected Westpac has agreed to extend the terms of the existing banking facility to 24 September 2010, subject to a range of terms and conditions, to allow sufficient time to conclude the initiatives being developed."
Allied managing director Rob Alloway told interest.co.nz last month that his company was looking to restructure its Westpac debt and was talking to a group of banks.