iProsperity Group boss Michael Gu says its loan dispute with ASX-listed Agricultural Land Trust (ALT) is "a misunderstanding over fees".

The tiny rural property trust, majority-owned by Western Australia land mogul Allen Caratti, said last week that iProsperity Underwriting, a subsidiary of the prominent investment house and fund manager, was "in default in respect of a number of interest payments due" on loans it had provided and that talks to extend the repayment date "had recently stalled".