you beauty, looks like 50c in the dollar is pretty close.Allco...

you beauty, looks like 50c in the dollar is pretty close.

Allco Finance Group Ltd (ASX Code: AFG): Sale of Alleasing Pty Ltd by Allco Managed Investment Funds Limited as Responsible Entity of Alleasing Trust Please refer to the attached announcement with respect to the Alleasing
Hybrids (ASX Code: AHUG) by Allco Managed Investment Funds Limited (AMIFL) as Responsible Entity of the Allco Hybrid Investment Trust regarding the proposed sale of Alleasing Pty Ltd.
AFG has approximately $147 million in direct and indirect secured exposure to Alleasing Pty Ltd and its controlled subsidiaries through a mezzanine loan and interests in certain residual value assets. As highlighted in the AHUG
announcement, an agreement has been reached to sell Alleasing Pty Ltd for a total consideration of approximately $146 million with the final consideration
payable subject to certain post completion adjustments and a deferred component of $20 million, which will be subject to any warranty or other claims.
AFG has agreed that in satisfaction for releasing all exposure to Alleasing Pty Ltd that it will accept approximately $59.4m and be paid in two instalments.
This amount represents the net sale proceeds after deducting sale costs, the costs and repayments to external lenders associated with Alleasing’s Senior Facilities, and the payment of the first $65m to the Alleasing Trust for the benefit of the AHUG Hybrid holders. Final payments to both AFG and for the benefit of AHUG Hybrid holders are subject to any warranty or other claims.
Completion of the sale of Alleasing Pty Ltd is subject to a number of conditions including certain approvals from the Alleasing Hybrid holders at an Extraordinary General Meeting. To the extent that any condition cannot be
satisfied or waived, the transaction may not complete.
The proceeds received by AFG will be used to further pay down its senior debt facility with its banking syndicate.
Yours sincerely,
Tom Lennox