Big margin call on Allco directors
Shares in Allco Finance Group, owned by the company's directors through a margin loan facility held by Allco Principals Investments, have been handed over to National Australia Bank and the Bank of Scotland. The banks have exercised their right to take possession of the 52 million shares which at one point last year were worth as much as $700 million but a falling share price meant that they were only valued at $33 million yesterday. With margin loans totalling $150 million the banks are facing losses of over $100 million. The Bank of Scotland, carrying $40 million of the debt, has moved to appoint a receiver over all assets of Allco Principals Investments which will probably mean liquidation of the investment vehicle.
Source: Sydney Morning Herald