Allco may argue that the letter of support, only extended until...

Allco may argue that the letter of support, only extended until sale (or IPO) of Alleasing...

Thus Allco may resist any support for the coupons. It will be interesting to see how it plays out. I don't know, but see below an interesting comment from the company.

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Allco's moves were based on a plan for a trade sale or initial public offering of Alleasing. A spokeswoman for Allco says: "The letter of support didn't impact equity holders other than enabling the company to continue as a going concern until the consolidation strategy is finalised, i.e. a trade sale or IPO of Alleasing."

http://business.brisbanetimes.com.au/business/shareholders-cop-risks-of-deals-with-allco-bosses-20080309-1y8k.html

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Anyway I own the Allco notes AFGHA.....so as long as Alleasing is sold for at least book value, another $100m plus.... (ie the Allco loan to Alleasing) will reduce the outstanding June 2009 senior debt to $200m .

If you own Allco ordinaries, or the notes.....obviously investors would hope the issue of the $100m support for the Hybrid does not bog down.

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AFGHA just too tempting....say purchase 1000 x AFGHA...ie about $17,000 worth, you will recieve $25,000 gross in installement payments in the next 14 months. Many full time traders are carrying loses from 2007/8, so no tax payable, at least for me.

I have the first reset date on these notes, as Nov, 2012....means you can conveet for $100 face value then.

Risky, but situation with no tax for me, makes a significant difference.