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
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
