Allco attempts to hold the line

Summaries - Australian Financial Review
Tuesday 11/3/2008 Page: 52

Allco Finance Group is being forced to sell assets and reduce debt by its bankers in order to extend a loan facility until June 2009. Allco is selling off non-core assets such as its wind farms and is trying not to break up its leasing portfolio, telling prospective bidders like Macquarie Bank, Babcock and Brown, TPG and General Electric that they will only consider a bid for the entire leasing book, including staff.

Allco leases 41 aircraft to Qantas Airways, British Airways and Emirates. Founder John Kinghorn has amassed a near 10 percent holding and is said to be buying himself a seat at the table.