allco reprieve expected

Allco Finance Group is set to get some more breathing room from its lenders today, as it seeks to restructure around $1.1 billion in debt.

The troubled firm's third possible extension in as many weeks is believed to be the result of the complexity of its debt refinancing plans and the larger number of lenders negotiating with Allco, The Australian Financial Review reports.

It is also understood that some Allco executives are pushing for the group to update the market on the group's performance and provide further detail to its debt refinancing activities, the paper reports.

Allco has a number of local and overseas creditors, including the Commonwealth Bank of Australia, which is owed $200 million, and Westpac Banking Corporation, which lent Allco $100 million.

A third extension may signal to the market that Allco's lenders are still keen on backing the group while it goes through its restructuring process.