Allco gains room on debt restructure
David Clarke
Allco Finance Group has gained further breathing space, announcing to the Australian Securities Exchange today that it has been granted a further extension of its senior debt facilities.
The group said discussions with its senior banks were continuing in a positive manner, with a further extension having been granted for its $250 million bridge facility until the end of next month (July 31, 2008).
“This extension comes as Allco continues to demonstrate its ability to achieve good outcomes in its asset realisation program, as outlined in Allco’s business restructure program … and meet its debt repayment schedule, [which] targets lowering its senior debt to $400 million by September 2009.”
The company said that a further $31.2 million had been repaid to Allco’s senior banks yesterday from the proceeds of completed asset sales, including a portfolio of European wind farms, bringing the total repayments since April to $177.1 million.
Allco managing director and chief executive David Clarke said the company was working closely and very productively with its banking syndicate to finalise the refinancing of its senior debt facilities.
However, the company announcement noted: “Until negotiations are finalised and restructuring documentation is signed, there can be no assurance that a restructure of Allco’s senior debt facilities will be concluded successfully.”
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