This article is from the Australian Property Journal archive
ALLCO Finance Group's lenders have agreed to further extend both the $250 million bridge facility and the review period until June 30.
Allco’s company secretary Tom Lennox said this latest extension enables the continuation of ongoing negotiations between Allco and its full senior bank group for a restructuring of all of Allco’s senior debt facilities.
From May 30, Allco has agreed to increase the margin payable under its senior debt facilities from 70-95 bps above the relevant currency borrowing reference rate to 300 bps above.
Allco has also delivered a business plan to the banks which entails restructuring the business which includes an asset sale program to support the pay down of senior debt to a target of $400 million by September 2009.
Lennox said Allco continues to meet its scheduled repayments of principal and interest under this plan.
Meanwhile, Allco has repaid a further $78.3 million last Friday from the proceeds of completed asset sales, bringing the total repayments since April 2008 to $145.8 million.
Allco’s drawn borrowings under its senior debt facilities, after the repayment will be $862.1 million.
“Whilst positive progress continues to be made, it should be noted that 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,” Lennox concluded.
Allco’s share price closed 7 cents or 13.73% lower at 44 cents.
Australian Property Journal
