"He said it was likely there would not be sufficient funds to meet all the employee entitlements, including redundancy payments. The 300 employees of Allco still working for the company had been advised to familiarise themselves with the federal government's General Employee Entitlement and Redundancy Scheme."
Some discussion of the banks' charges:
"Mr McGrath said it was too early to discuss whether or not the floating charges registered over Allco assets, in the six months before his appointment, would have to be revoked. This would take many months work.
Under insolvency law, a floating charge taken out six months prior to an administration is void if the company was insolvent at the time of the company going under.
He said that it was unlikely that there would be disputes over floating charges, as it was already clear that the interests of noteholders owed $370 million was subordinate to secured creditors."
That does not look too positive either - although there is obviously further investigation to be done.
AFG Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
