Business Spectator 9:01 AM, 14 Mar 2009Allco bankers might repay...

Business Spectator 9:01 AM, 14 Mar 2009
Allco bankers might repay $400m to creditors: report
The bankers to Allco Finance Group might be forced to return more than $400 million of debt repayments to unsecured creditors, The Sydney Morning Herald reports.

A report by administrators McGrathNichol showed Allco had granted security over most of its assets to its banking syndicate in 2008, but a liquidator could seek to have those charges voided, according to the paper.

Allco creditors will vote on whether to liquidate the company on March 21. The paper says receivers appointed by the banking syndicate are talking with interested parties about whether to present a deed of company arrangement as an alternative.

The Sydney-based diversified financial group went into voluntary administration on November 4.

A creditors' meeting in November heard that there were $1.145 billion of creditor claims, including $640 million owed to the banks.

Westpac is owed $200 million, while Commonwealth Bank is owed $170 million. Other members of the Allco banking syndicate include Societe Generale, ABN Amro and JP Morgan Chase.