Fiji Resort $10 Million Headache For Allied Farmers

Hanover Finance's loan to Fijian resort Vatulele has proved disastrous for Allied Farmers with ASB Bank calling in the receivers, The New Zealand Herald reported. The multimillion-dollar loan on the resort, a popular winter destination for New Zealanders and Australians, has been in default for more than two years. ASB, which lent to the project, pulled the plug last week. An Allied Farmers subsidiary is the second secured lender after ASB. The resort is continuing to operate and advertise but Allied Farmers, which inherited the loan when it bought the Hanover and United assets, might now have to write off more than $10 million. Last year, Allied was fighting to recover money from Fiji. John Loughlin, then chairman, and Rob Alloway, then managing director, said they had a number of causes of actions and demands for payment against developers for loans on properties there. Hanover also loaned money to Fijian resort project Pacific Point, which had hardly started before it failed. Read more.