From the Australian:
Allco's Japan trust in trading halt
Katherine Jimenez | April 30, 2008
ALLCO Finance Group's Rubicon Japan Trust was placed in a trading halt yesterday, pending keenly awaited news on the refinancing of a debt facility with the Shinsei Bank.
Rubicon is awaiting a response from financial services companies Shinsei Bank and Credit Suisse on an extension request over the debt repayment of Y5.5 billion ($56 million).
The biggest component of that debt repayment facility -- Y4.9 billion -- is with Shinsei Bank, and is due on May 6.
The Trust is owned by the embattled Allco Finance Group, which is only days away from hearing the fate of the restructure of a corporate debt facility of up to $1.15 billion.
Speculation has been on a positive outcome for Allco, where a spokesman said it was "still in discussions with the banks. No change."
A drop in Allco's market capitalisation to below $2 billion early this year triggered a "review event" on January 9.
Since then Allco and its bankers have been locked in talks on the restructure of a $250 million corporate loan facility due to be renewed on May2 and a $900 million loan that matures in September next year.
Allco has also embarked on an immediate sale of non-core assets and a staff reduction from about 600 to 200 in an attempt to cut its debt position.
Management at Westpac, one of 12 banks in the facility, could be queried on its position at its interim results meeting today.
Shares in Allco fell 6c yesterday to 82c.
In a brief statement yesterday, Rubicon said it requested the trading halt because "we believe that there will be information regarding the refinancing of the Shinsei Bank debt facility which we will soon be in a position to release to the market".
The Trust warned this month that should both the required debt repayment dates not be extended, "this would lead to an event of default". An announcement is expected by tomorrow.
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