Is the Allied Farmers deal with Hanover Finance a good move?

Mark Hotchin, executive director and major shareholder of finance company Hanover Finance. Photo / Brett Phibbs

Mark Hotchin and Eric Watson's Hanover Group is headed for receivership if Allied Farmers' proposed debt for equity swap cannot be completed, the Grant Samuel report on the transaction found.

However both Grant Samuel and Guinness Peat Group's Tony Gibbs, who yesterday confirmed his company had decided against tabling an alternative offer, raised questions about the deal's merit for Allied Farmers and its shareholders.

is the Allied Farmers deal with Hanover Finance a good move?