John Kinghorn, now the largest shareholder in Allco Finance Group with a stake of in excess of nine per cent, told
The Australian the financier would sell some of its assets at a profit and "some at an awfully big loss".
"If you look at the plan they have announced it's to sell a lot of surplus assets, to get out of what I call non-core activity," he told the newspaper.
"I think we're going to see a lot of red ink but they will pay down their banks," Kinghorn said.
"You will be left with a much smaller but world-class business and I would like to have a shareholding in that."
Allco's one of a group of structured finance entities at the centre of the market storm created by the liquidity crunch. The group is continuing to restructure and renegotiate its loans, while reshuffling management and cutting staff.