Allied Farmers is due to  pay  Richlisters Eric Watson and Mark Hotchin another $5 million by the end of June.

Allied managing director Rob Alloway said the payment was the final settlement on the deal between Allied Nationwide Finance over the Hanover Finance and United Finance loan books.

“It’s a contract and part of the sale and purchase agreement,” said Mr. Alloway.

Mr. Alloway would not comment on whether Allied planned to dispute that final payment given the huge writedowns in the value of the assets last month.

Allied's share price has halved since the December deal with Eric Watson and Mark Hotchin, from 10c to 5c, leaving the 16,000 Hanover/United investors who have not sold out in an increasingly poor position.  The money was often people's life savings or retirement funds.

Mr.  Alloway says former Hanover investors he met were disgusted about the extravagant lifestyle of business co-founder Mark Hotchin, now reportedly leaving Hawaii for the South of France.

Allied’s market capitalization now stands at just $103 million.

Meantime, Allied Farmers is taking legal action against real estate developers reneging on loans worth millions of dollars on properties here and in Fiji.

John Loughlin, chairman of Allied Farmers, says they had a number of causes of actions and demands for payment against developers.

The outcome of  the litigation could decide the fate of more than $500 million which investors had poured into Hanover and United, now converted into sliding Allied shares.