Allco Finance Group has denied a report in The Sydney Morning Herald yesterday that it had “extended a line” of $500 million to broker Tricom Equities.
Company secretary Tom Lennox said in a general press release that Allco had never advanced or loaned any funds to Tricom, which was reportedly the single largest brokerage trading shares in Allco.
The broker failed to settle share trades reportedly worth tens of millions of dollars on Tuesday, halting settlement on the Australian Securities Exchange for more than four hours.
It is believed the margin loan specialist took heavy losses last Tuesday when the worst share market fall in 18 years caused a record number of margin calls.
