Allco says loan discussions too sensitive
Allco Finance Group has defended its decision not to disclose that its liabilities were under review by saying that making such a statement could have been prejudicial to the outcome of the negotiations. The company said they had commenced discussion with its lenders to amend the terms and conditions of a $1.15 billion loan on December 18 after changes in market capitalisation triggered the event. The ASX has asked Allco to explain why it delayed informing the market about an "event review" by its bankers on January 9, and if unhappy with the response can refer the matter to the Australian Securities and Investments Commission.
Source: The Australian