allcos debt has gone up 140m

how is this possible? after reading this i am convinced there will be absolutely nothing for noteholders



Allco Finance Group Ltd chief executive David Clarke has stepped down from his role after helping hand-over the debt-stricken investment firm to receivers and managers Ferrier Hodgson.

Allco Finance Group's board called in administrators in early November as it faced the prospect of insolvency amid the meltdown in financial markets.

Ferrier Hodgson joint receiver and manager Peter Gothard told AAP on Friday that Allco's debt burden totalled about $740 million, up from about $600 million after the company's banks closed out various hedges including for currency and interest rates.

"He (Mr Clarke) has been very helpful in the past month or so since we were appointed," Mr Gothard said.

"It is very useful to have a bit of continuity of management.

"He agreed to help for a little while before moving onto whatever he's going to do now, and we agreed that would be the end of the year.

"It was really about keeping some of the troops together while we went through the early stages of receivership."

He said he hoped Ferrier Hodgson could provide "a reasonable return to secured creditors" through asset sales but he was uncertain whether there would be any compensation for unsecured creditors.

So far, three minor assets have been sold for an undisclosed sum and the receiver is now focused on selling Allco's major assets, its shipping and aviation businesses, Mr Gothard said.

He said the receivers hoped to complete these key asset sales by February.

Before Christmas, about 3,500 rail freight cars had been sold to one of the largest rail freight operators in the US, GATX Corporation, while a small office equipment leasing business was bought by CHAMP Private Equity.

"The last one that was sold was an interest in a Hong Kong/Chinese investment fund called KL Pacific Allco Investments Ltd," Mr Gothard said.

"Allco had a 25 per cent share and sold down two-thirds of that share to the other joint venture partners, so it was a fairly straightforward transaction."

He said some of Allco's financial assets remained to be sold, wound up "or possibly just run them out and collect proceeds from them as time expires".

He said there was a lot of interest in Allco's assets.

Sales prices could not be revealed for confidentiality reasons, he said, "but it is significant so far".