Margin lenders ease pressure on Allco
Pressure has been eased on funds manager Allco with the firm announcing to the Australian Stock Exchange (ASX) today that it has gained some breathing space from its two remaining margin lenders.
Allco released to the ASX this morning a letter in which it said that Allco Principles Investment Pty Ltd (API), a wholly owned subsidiary of Allco Principles Trust, “confirms that it has concluded a Heads of Agreement providing for a standstill agreement with its two remaining margin lenders, subject to formal documentation.
It said that pursuant to this agreement, no further Allco Finance Group or Allco HIT Limited stock would be sold by the margin lenders during the term of the standstill agreement.
The letter said the agreement covered 23.7 million Allco shares and 0.6 million Allco HIT shares owned directly by API and 2.4 million Allco HIT shares that are pledged as security to the margin lenders by the ordinary unit holders of APT.
It said the terms of the standstill agreement extended beyond the release of Allco’s full year results for the current financial year.
AUTHOR
Mike Taylor
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