Back then, as is the private equity custom, the consortium of smart guys was to have ripped out all the cash and replaced it with debt, sacked people, generally slashed and burned costs for three years, then tipped the thing, skinned, back into the share market via a suavely
PR-ed float with a glossy prospectus and compelling turnaround story.
The $11 billion takeover play was to have been financed with $10 billion in debt - ''covenant lite'' at that. And Allco was to have had the majority equity stake at roughly 30%. Or controlled the majority stake rather, after winning the bid, exploiting the airline as collateral to borrow, then spinning off their equity stake into a special vehicle which would have been called Allco Australia Aviation Fund or some such.
Gee this journo is good......... he probably searched all the old pprune threads on the topic from the archives
Thanks Sunfish for the link, its made an entertaining read. I feel for those who got sucked in by this mob and the Mac Banks etc..... but these kinds of thieves eventually get what is coming to them.
I thought the system was tighter controlled after Bond/Skase/Connel et al.
