Allco Finance Gets Another Lifeline

Submitted by Craig Strzelecki on Tue, 01/07/2008 - 23:06.

Allco Finance (AFG), struggling fund manager, announced that its bankers have granted further extension on its senior debt facility of up to $1.5 billion. It further added that its talks with its bankers continue on a positive note. AFG has agreed for an extension for $250 million bridging facility as it received an extension of deadline till July 31. Banks have granted the new deadline to the company to sort out its refinancing while they still continue to call shots inside Allco. Its syndicate of banks includes Westpac, Commonwealth Bank and ABN Amro.

This news comes after Babcock and Brown received similar reprieve from its bankers on $2.8 billion loan facility on Monday. Allco is also working on removal of market capitalisation clause from its agreement of its restructure debt facility like Babcock and Brown.

However, Chief Executive of Allco Finance, David Clarke, stated that till the final negotiations were not over with the banks, nothing could be confirmed about Allco's senior debt facility. He also added that he expected good outcomes from in asset realisation programs and hopes to meet its debt-repayment schedule which would lower its senior debt facility to $400 million by September 2009. A senior debt facility of $31.2 million was repaid yesterday to its banks and since April Allco has already paid $177.1million of its debt after asset sales in businesses including rail, shipping and aviation. It has sold its wind farms in Europe and now it has reached an agreement to sell its wind farms in United States as well. This would further contribute to its debt repayment. Allco's current drawn borrowings stand at $830.6 million after its recent repayment of $31.2 million.

The fund manager with its main businesses in transport and property funds is still recuperating from stock market correction in January earlier this year. It had revealed in May 2008 that it expected a loss of $1.5 billion in fiscal 2008.

The share prices reflected a 15 percent rally upon the announcement as shareholders learn to live with banks on their backs. The share prices initially rose to 6 cents or 15 percent to 46 cents a share and settled to close at 41.5 cents which was 4 percent or 1.5 cents up for the day.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <blockquote> <h2> <h3>
  • Lines and paragraphs break automatically.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
3 + 6 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Top 50 Public Companies Listed on the Australian Stockmarket as at 29/05/2009

  1. BHP Billiton
  2. Westpac Banking Corporation (WBC)
  3. Commonwealth Bank of Australia (CBA)
  4. National Australia Bank (NAB)
  5. Telstra (TLS)
  6. ANZ
  7. News Corporation (NWS)
  8. Woolworths Limited(WOW)
  9. Woodside Petroleum Limited (WPL)
  10. Rio Tinto
  11. Westfield Group (WDC)
  12. Westfarmers Limited (WES)
  13. QBE Insurance
  14. CSL
  15. Newcrest Mining Limited (NCM)
  16. Origin Energy Limited (ORG)
  17. Santos Limited (STO)
  18. AMP Limited (AMP)
  19. Maquarie Group (MQG)
  20. Foster’s Group Limited (FGL)
  21. Brambles Limited (BXB)
  22. Fortescue Metals (FMG)
  23. Lihir Gold Limited (LGL)
  24. AXA Asia Pacific Holdings Limited (AXA)
  25. Insurance Australia Group Limited (IAG)
  26. Suncorp-Metway Limited (SUN)
  27. Orica Limited (ORI)
  28. Coal & Allied (CNA)
  29. Stockland (SGP)
  30. Leighton Holdings (LEI)
  31. Lion Nathan Ltd (LNN)
  32. Coca-Cola Amatil Limited (CCL)
  33. AGL Energy Limited (AGK)
  34. Oil Search Limited (OSH)
  35. ASX (Australian Securities Exchange)
  36. Crown (CWN)
  37. WorleyParsons (WOR)
  38. Transurban Group (TCL)
  39. Computershare Limited (CPU)
  40. Toll Holdings Limited (TOL)
  41. Energy Resources of Australia (ERA)
  42. Sonic Healthcare Limited (SHL)
  43. Tabcorp Holdings (TAH)
  44. GPT Group (GPT)
  45. Qantas Airways Limited (QAN)
  46. Amcor Limited (AMC)
  47. Incitec Pivot (IPL)
  48. Australian Foundation Investment Company (AFI)
  49. Sims Group Limited (SGM)
  50. CFS Retail Property Trust (CFX)
  51. Telecom Corporation of New Zealand (TEL)
  52. New Hope Corporation Limited (NHC)
  53. Macquarie Airports (MAP)
  54. OneSteel Limited (OST)
  55. DEXUS Property Group (DXS)
  56. Argo Investments (ARG)
  57. BlueScope Steel (BSL)
  58. Caltex Australia Limited (CTX)
  59. Metcash Trading Limited (MTS)
  60. Lend Lease Corporation Limited (LLC)
  61. Macquarie Infrastructure Group (MIG)
  62. Paladin Energy (PDN)
  63. Fletcher Building (FBU)
  64. Harvey Norman Holdings (HVN)
  65. Tatts Group (TTS)
  66. Cochlear Limited (COH)
  67. Alumina (AWC)
  68. OZ Minerals (OZL)
  69. Arrow Energy (AOE)
  70. Fairfax Media Limited (FXJ)
  71. Nufarm Limited (NUF)
  72. Aquarius Platinum (AQP)
  73. Washington H Soul Pattison & Company (SOL)
  74. Boral (BLD)
  75. Felix Resources (FLX)
  76. Equinox Minerals (EQN)
  77. Platinum Asset Management Limited (PTM)
  78. CSR
  79. SP AusNet (SPN)
  80. Primary Health Care (PRY)
  81. Mirvac Group (MGR)
  82. Ramsay Health Care (RHC)
  83. Reece Australia (REH)
  84. Billabong International Limited (BBG)
  85. Aneka Tambang (Persero) Tbk (Pt) (ATM)
  86. Sino Gold Mining (SGX)
  87. Aristocrat Leisure (ALL)
  88. James Hardie Industries N.V. (JHX)
  89. Bendigo and Adelaide Bank Limited (BEN)
  90. David Jones (DJS)
  91. Goodman Fielder (GFF)
  92. Centamin Egypt (CNT)
  93. United Group (UGL)
  94. Consolidated Media Holding (CMJ)
  95. ABB Grain (ABB)
  96. Downer EDI Limited (DOW)
  97. Auckland International Airport (AIA)
  98. Brickworks (BKW)
  99. Australian Worldwide Exploration (AWE)
  100. Duet Group (DUE)
  101. Commonwealth Property Office Fund (CPA)
  102. Adelaide Brighton (ABC)
  103. APA Group (APA)
  104. Bank of Queensland (BOQ)
  105. SKY Network Television (SKT)
  106. JB Hi-Fi (JBH)
  107. Seek (SEK)
  108. Iluka Resources Limited (ILU)
  109. Macquarie Communications Infrastructure Group (MCG)
  110. Milton Corporation (MLT)
  111. Singapore Telecommunications (SGT)
  112. SKYCITY Entertainment Group (SKC)
  113. Extract Resources (EXT)
  114. Riversdale Mining (RIV)
  115. Perpetual Limited (PPT)
  116. Whitehaven Coal (WHC)
  117. Aquila Resources (AQA)
  118. Macarthur Coal (MCC)
  119. Challenger Financial Services Group Limited (CGF)
  120. Fisher & Paykel Healthcare Corporation (FPH)
  121. Ansell Limited (ANN)
  122. Spark Infrastructure Group (SKI)
  123. Transfield Services (TSE)
  124. Karoon Gas Australia (KAR)
  125. Seven Network Limited (SEV)
  126. Campbell Brothers Limited (CPB)
  127. Energy World Corporation (EWC)
  128. ING Office Fund (IOF)
  129. Infigen Energy (IFN)
  130. Healthscope (HSP)
  131. Asciano Group (AIO)
  132. TOWER Australia Group (TAL)
  133. Navitas (NVT)
  134. Ten Network Holdings (TEN)
  135. Wotif.com Holdings (WTF)
  136. AngloGold Ashanti (AGG)
  137. Austar United Communications Limited (AUN)
  138. IOOF Holdings (IFL)
  139. Air New Zealand Limited (AIZ)
  140. Linc Energy (LNC)
  141. Warehouse Group (WHS)
  142. Macquarie Office Trust (MOF)
  143. Sigma Pharmaceuticals Limited (SIP)
  144. Zimplats Holdings (ZIM)
  145. IRESS Market Technology Limited (IRE)
  146. Monadelphous Group (MND)
  147. Silex Systems (SLX)
  148. Western Areas NL (WSA)
  149. West Australian Newspapers Holdings Limited (WAN)
  150. Centennial Coal Company (CEY)