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Allco Surges After Banks Give Funds More Time on Debt (Update1)

By Stuart Kelly

March 25 (Bloomberg) -- Allco Finance Group Ltd., the Australian asset manager that breached loan obligations, rose by a record amount on the Australian stock exchange after two of its funds were granted more time to repay debts.

Bankers for Rubicon Japan Trust and Allco Commercial Real Estate Investment Trust, both managed by Sydney-based Allco, agreed in the past week to extend maturity dates for loans and currency hedging arrangements, easing concern Allco will be unable to refinance debt.

Allco doubled to 42.5 Australian cents at the 4:10 p.m. close of trading in Sydney. The stock lost 93 percent of its value this year as directors were forced to sell their shares and the firm struggled to restore investor confidence amid the global debt crisis.

Allco is negotiating with banks on A$250 million of loans due May 1, and lenders are reviewing its ability to repay a further A$900 million of debt.

Rubicon Japan, which invests in property, today said National Australia Bank Ltd. agreed to extend the maturity date for a loan and currency-hedging arrangements by 12 months to March 31 next year.

Allco Commercial, based in Singapore, said on March 20 it received approval to extend the maturity date for S$550 million ($396 million) of its bonds, two days after its credit rating was cut by Moody's Investors Service.

To contact the reporter for this story: Stuart Kelly in Sydney