Lenders check the books at Allco

Lenders to Allco Finance Group have called in corporate restructuring specialists as they attempt to ensure the viability of the investment finance specialist. With Allco due to release its interim results tomorrow, there is increasing speculation that the company's position is worse than had been thought. It is believed that lenders, led by the Commonwealth Bank, have appointed Ferrier Hodgson to go over Allco's books to ensure that the firm will be able to refinance a $250 million loan facility in May. Allco shares are currently in a trading halt but last sold at $3.05, a big improvement on the $1.70 they dropped to in January but well down on the $13.24 achieved in December 2006.

Source: The Australian Financial Review