Pegasus747
18th May 2009, 08:00
seriously guys can you imagine where we would be now?????
I am going to light a candle and thanks the Lord that someone in America Slept in......
Allco heads towards wind-up
May 18, 2009 - 5:03PM
Administrators of failed investment firm Allco Finance Group will recommend the companies be wound up.
Administrators Anthony McGrath and Joseph Hayes of McGrathNicol say it is in the best interests of creditors to vote for Allco Finance Group and its subsidiaries be placed into liquidation.
"That is based on our analysis that the companies are insolvent and no acceptable deed of company arrangement has been proposed,'' they said in a supplementary report to creditors released today.
"Accordingly, it is our opinion that it is in the interests of creditors of each company to vote in favour of winding up each of the companies and appointing liquidators.''
The next meeting is on May 26.
Allco is one of the highest profile Australian corporate collapses in the wake of the global financial crisis, alongside Babcock & Brown and ABC Learning.
It owes creditors about $1.145 billion.
The report did not give an update on the administrators probe into more than $400 million of director-related transactions.
Allco's banks are looking to recover about $640 million in secured loans, which their receivers, Steve Sharman and Peter Gothard of Ferrier Hodgson, hope to recoup through asset sales.
While the banks are acting as secured lenders, that was the result of deals done in the six months before the administrators took over.
Therefore, under corporations law, if Allco is placed in liquidation, the liquidator could reverse the security that was granted over some of the assets.
The remaining creditors, including former employees of Allco, are seeking the repayment of $505 million of unsecured and subordinated loans.
Former employees of Allco cannot claim entitlements - such as unpaid wages - under the government's General Employee Entitlements Redundancy Scheme (GEERS) until the company is in liquidation.
I am going to light a candle and thanks the Lord that someone in America Slept in......
Allco heads towards wind-up
May 18, 2009 - 5:03PM
Administrators of failed investment firm Allco Finance Group will recommend the companies be wound up.
Administrators Anthony McGrath and Joseph Hayes of McGrathNicol say it is in the best interests of creditors to vote for Allco Finance Group and its subsidiaries be placed into liquidation.
"That is based on our analysis that the companies are insolvent and no acceptable deed of company arrangement has been proposed,'' they said in a supplementary report to creditors released today.
"Accordingly, it is our opinion that it is in the interests of creditors of each company to vote in favour of winding up each of the companies and appointing liquidators.''
The next meeting is on May 26.
Allco is one of the highest profile Australian corporate collapses in the wake of the global financial crisis, alongside Babcock & Brown and ABC Learning.
It owes creditors about $1.145 billion.
The report did not give an update on the administrators probe into more than $400 million of director-related transactions.
Allco's banks are looking to recover about $640 million in secured loans, which their receivers, Steve Sharman and Peter Gothard of Ferrier Hodgson, hope to recoup through asset sales.
While the banks are acting as secured lenders, that was the result of deals done in the six months before the administrators took over.
Therefore, under corporations law, if Allco is placed in liquidation, the liquidator could reverse the security that was granted over some of the assets.
The remaining creditors, including former employees of Allco, are seeking the repayment of $505 million of unsecured and subordinated loans.
Former employees of Allco cannot claim entitlements - such as unpaid wages - under the government's General Employee Entitlements Redundancy Scheme (GEERS) until the company is in liquidation.