From Daily Telegraph.Allco granted debt extensionALLCO Finance...

From Daily Telegraph.


Allco granted debt extension

ALLCO Finance Group says its bankers have granted the investment company an extension of a senior debt facility.

Allco (afg.ASX:Quote,News) said talks with its bankers continue, in a "positive manner.''

The company has agreed on an extension for a $250 million bridging facility and a related review period until July 31.

The extension comes as Allco continues to address an asset realisation program and meet its debt repayment schedule, aimed at reducing it senior debt to $400 million by September 2009.

"We are working closely and very productively with our banking syndicate to finalise the refinancing of our senior debt facilities,'' Allco managing director and chief executive David Clarke said.

Allco also said today a further $31.2 million of debt was repaid to its senior banks yesterday.

The debt was repaid from the proceeds of completed asset sales, including a portfolio of European operating wind farms. Since April, Allco said it has repaid a total of $177.1 million of debt.

Allco's drawn borrowings under its senior debt facilities, after the repayment of the $31.2 million, now stands at $830.6 million.

Current contingent commitments, such as letters of credit, under the facilities total $63.4 million.

This has resulted in a net reduction of outstanding senior debt and contingent commitments over the month of $31.6 million, after currency movements.

Allco also expects the closure soon of the sale of its Tehachapi wind project in the US will contribute towards further debt repayments and releases from contingent commitments.