Allco Principals appoint adminstrator Published 10:08 AM, 10 Mar...

Allco Principals appoint adminstrator Published 10:08 AM, 10 Mar 2008....

I don't know the allco story in full but, i did manage to find some articles via business spectator dated back in march 2008 which give some indication as to the sudden notice of voluntary administration tonight.

Interesting article dated back 10 march 2008 on business spectator.I wonder if this was a clear message to afg holders 6 months ago that the company was going into receivership today and is it possible that some parts of the company was already in the process of receivership many months ago...


Worth a read....

March 10 2008

Shares in embattled funds manager Allco Finance Group Ltd shed another 12 per cent on Monday as administrators took control of its major shareholder, Allco Principal Investments Pty Ltd (API).

Allco stock closed six cents, or 11.43 per cent, lower at 46.5 cents as the firm confirmed administrators were now in charge of its senior executives' personal investment vehicle, API.

Deepening investor concerns about Allco's high debt and complex structure has stripped more than $2 billion off its value since it began the year trading around $6.20.

Its all time high was $13.24, recording in February 2007 and its all time closing low was 39 cents on March 4 last week.

Meanwhile, in a bizarre twist to shareholder blues over Allco, a mortgage company with a similar name has been forced to issue a public statement distancing itself from the financing firm.

Perth-based mortgage broker Australian Finance Group Ltd says it has received abusive phone calls, emails and letters and even a letter containing a mysterious white powder from some enraged Allco investors.

"If people could understand that we are not Allco, that would be fantastic," Australian Finance Group director Kevin Matthews.

Monday's announcement about API confirms its indication last week that it was likely to go into voluntary administration, after it was unable to secure a standstill agreement with its margin lenders.

Its margin lenders are National Australia Bank Ltd and Bank of Scotland International (BOS).

API appointed Stephen James Parbery, Mark Julian Robinson and Christopher Clarke Hill of PBB as administrators on Friday, March 7, it said on Monday.

The same team have also been appointed as administrators of 15 API subsidiaries including Allco HIT Holdings Pty Ltd, Allco Aviation Lease Surety Co Pty Ltd, Allco Principals Property Pty Ltd and Allco Principals Rail Pty Ltd.

But there is no administrator appointed to Allco Managed Investment Funds Ltd, which is the responsible entity of API.

NAB had provided a $110 million loan to API secured by shares in the parent company.

The proposed standstill agreement fell apart when API failed to produce any additional security.

NAB then moved to appoint an agent to possess about 34.48 million Allco shares from API and 4.091 million shares in listed fund Allco HIT Ltd.

BOS has appointed a receiver to 18.34 million Allco shares and 3.0 million shares in Allco HIT.

The total number of shares taken into possession by Allco's margin lenders equate to about 14 per cent of Allco's issued capital.

Last month Allco announced a desperate rescue plan to sell off assets to pay down looming debt as it moves out of financial assets and refocuses on its core transport leasing business.

Last week margin calls forced it to sell off its entire stake in its three satellite Rubicon property trusts.

Allco has a May 1 deadline to refinance a $250 million bridge facility.

It is also facing a potential requirement to repay another $900 million of senior debt in 90 days, if given notice.







Administrators move in to unravel private companies

Abstracted from The Australian Financial Review

March 11th 2008

Allco Finance Group in Australia is facing difficult times. PBB has become the administrator of a number of private companies linked with key executives of Allco Finance. On 10 March 2008, shares in Allco Finance dipped by 11.4% to close at $A0.465. PBB has also been appointed as the administrator of 15 Allco Principal Investments subsidiary companies. Executives of Allco Finance have said that the collapse of the various private Allco funds is a shareholder issue.....