kill or cure but get on with it, page-4

Seems you may get your wish monday. The Murdoch press say they may announce on Monday as they believe that CBA have signed off.

See below. It doesn't sound to bad. Looks like they have been given time to sort it out with no asset sales straight away.

But I won't get to excited quite yet till I hear what they eventually announce.


John Durie and Katherine Jimenez | February 23, 2008

THE suspended Allco Finance Group is almost certain to release its long-awaited half-year results on Monday, along with a strategic plan detailing longer-term asset sales.

The plan will reportedly be supported by the company's banking syndicate led by the Commonwealth Bank, which has agreed to the process.

There is always the possibility of a change over the weekend, but it appeared last night that the chance of any immediate asset sales was now probably slim.

There had been talk yesterday that Allco was looking at selling its 37.5 per cent stake in a Consolidated Edison power station deal to the major shareholder, Industry Funds Management, but that might no longer be an immediate necessity.

IFM and Allco agreed to pay $US1.47 billion ($1.6 billion) to buy a portfolio of power stations from Consolidated Edison.

Allco has been experiencing refinancing woes related to a $250 million facility due to be repaid in May.

The US deal was announced in December and it was due to be completed by June.

If the deal is altered, Allco might have to pay a break fee.

There were also reports that the price Allco/IFM paid for the asset now looks to have been about $US150 million above its current value because of the sharply increased cost of borrowing since the deal was done.

Allco must report its accounts by Friday.

A key element of the outcome will be its $250 corporate senior debt facility, scheduled to be repaid in May.

Allco had been exploring a number of options, including discussions with Macquarie Group, about a partial asset sale and a cash injection, which could see the business take on a different shape.

Until last night, there was believed to be unease among the Allco directors about signing the accounts until there was clarity on future funding, since solvency depends on funding certainty.

The Allco board is made up of non-executive directors Bob Mansfield, Rod Eddington, Neil Lewis, David Turnbull and Gordon Fell.

Allco placed its shares on a trading halt on February 11 and then requested a suspension after delaying its interim profit results for a second time.

Under the Australian Securities Exchange listing rules, companies must report their financial results within two months after signing off on their accounts.

There is market speculation that no individual buyer wants to take over all of Allco Finance Group.