Allied Farmers has negotiated a further six-month extension of its arrangements with Westpac as it continues to work on new bank facilities and restructuring initiatives.
Craigs Investment Partners broker Chris Timms said it was the third piece of good news for investors in recent weeks.
That good news had boosted the share price 30% to 4.8c.
First, Allied had refused to pay $5 million owing to Hanover directors Eric Watson and Mark Hotchin.
Last week, it sold Five Mile, in Queenstown, and yesterday, Westpac agreed to an extension to debt facilities.
"The extension takes away the uncertainty for the company for a bit longer as it negotiates on some of the outstanding loans," he said.
Westpac had already agreed to an extension of its debt facilities with Allied Farmers, to September 24, to consider debt retirement and company restructuring, Allied Farmers managing director Rob Alloway said.
"We are pleased that Westpac has signalled its confidence in the yet-to-be-completed initiatives by providing the extension of the facility term."
As of June 25, the amount outstanding under its Westpac loan facility was $16.5 million, down from $21 million a year earlier.
Allied Farmers also has an overdraft facility of $2.5 million.
The facilities were secured over the assets of a group which included the parent company, Allied Farmers Limited, its subsidiaries holding the assets of Allied Farmers' rural business, and the assets acquired from Hanover Finance and United Finance in December 2009.
The charging group did not include the assets of Allied Nationwide Finance Ltd.
Shares in Allied last traded at 4.8c
