NEWS UPDATE: Allco's Max Trust foresees 'significant losses'

mortgage

13 October 2008
| By By Liam Egan |

Allco Max Securities and Mortgage Trust (MAX) expects to reduce the carrying (or book) value of its $10 million exposure in failed Iceland-based Glitnir Bank to nil, following a downgrade by Standard & Poor’s.

S&P downgraded the rating on Glitnir Bank from CCC (credit watch negative) to D on October 9 after the bank was placed into receivership by the country’s banking supervisor.

A D rating by S&P indicates a belief that there will be a general default and that the obligor will fail to pay all or substantially all of its obligations as they become due.

The bank’s ratings downgrade places “further pressure on portfolio tests in Max’s debt program and increases the likelihood Max will be in breach of its portfolio tests”, according to Allco company secretary Tom Lennox.

“Remedying these breaches would have the effect of requiring further asset sales and further significant realised losses,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 3 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 3 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 3 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 week 3 days ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

1 week 2 days ago

The Federal Court has given a verdict on ASIC’s case against Dixon Advisory director Paul Ryan which had alleged he breached his director duties....

1 week 1 day ago