Is it all over for Allco?

22 October 2008

1 minute read

It looks like Allco Finance might be finally finished off. Now that it has called off asset sales designed to help keep its creditors at bay, the financial engineering group is in serious trouble.

Even the bosses think the game may now be up: "...the directors believe that there is a significant risk that Allco will not be able to meet the debt repayment schedule in its senior debt facility for the months of November and December 2008."

So if you're still working for Allco, is your job in jeopardy, too? And in the current job market, is it a curse to have Allco on your CV?

And is there any hope left for anxious Allco employees? It seems not: while the firm has entered new discussions with its bankers, it is now at risk of defaulting on interest payments worth AU$35m.

Is Allco about to blow up? And who's to blame for its woes?

AUTHOReFinancialCareers Australia

Insider Comment

di
disappointed
24 October 2008
look at the CDS & share price of Mac can hint the true mkt perceptions of the firm. the company statement cannot be relied upon these days. remember the statement by Dick Fuld in Sep saying the firm will become financially sound in CY09 ? yes, it's stable as it's gone a few days later
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ma
macnext?
24 October 2008
Perhaps this debate should be: will Macquarie go the way of Allco/B&B.
Thoughts? I
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Ji
JimBean
24 October 2008
Banker, while there are similarities between the models of Alloc and Mac, you can't really put them in the same "endangered species" list. Mac is in far better financial health
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ba
banker
24 October 2008
Allco is set to go, followed by Big B next. The high gearing Oz model is failing completely. Perhaps M as well?
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Gu
Gunner
23 October 2008
Forget Allco - it's gone, history, move on, it's a small fry anyway.
Reply