"guys, from my understanding the receivers are not obliged to...

"guys, from my understanding the receivers are not obliged to strike a deal with ahug holders at all. "

I think that's not the case. After all why would the receivers strike a deal with AHUG holders otherwise, because they're just nice guys :)

If receivers are called in to the trust then Allco needs to lodge a proof of debt. That proof of debt needs to be offset by the amount that Allco owes Alleasing. It would only be the net amount that Allco can claim. In short there is a reasonable chance that the money Alleasing has of Allco's would stay with Alleasing at least until a court decides how much is owing against the LOS and then until a court decides if the offset is valid. __It's only the net amount after offset that would have seniority___.

There is case law supporting such an offset in receivership, administration and liquidation. There is also case law supporting options issued before administration but exercised after administration being valid for offset. That's not exactly the same as a LOS but in that case the judge determined that there should be wide leeway in the interpretation.

I'm not a lawyer but the receiver are NOT just being nice to us. There is at least substantial uncertainty around Allco getting their mezzanine finance back if they put the trust into some sort of insolvency administration.

That's why they're offering to deal with us. That's also why they'll renew the Mezzanine finance on Monday. The banks will happily renew if the Mezzanine is renewed as there is more than enough money to repay the banks.

The frustrating thing is that the trust is not providing this sort of information to us as they are ultimately managed by Allco. The note trustee won't act unless there is a specific request to do so (with an associate % of note holders requesting such intervention).

If i'm wrong we'll know in 48 hours :)