It was a familiar story yesterday when Alleasing Trust, a member of the Allco group, reported its results for the six months to December. The trust reported good operating results but a bottom line written in red ink as a result of an unmanageable debt burden.Alleasing leases small-value office, medical and manufacturing equipment that has rapid depreciation and obsolescence rates.   Income was up10 per cent, operating expenses were down 10 per cent and earnings before finance costs, tax, depreciation and foreign exchange of $13.2 million were up 86 per cent on the previous corresponding period.But all of this was overshadowed by what Alleasing's chief executive officer Hugh Lander called a sub-optimal capital structure.Interest costs were $20.3 million dollars. After accounting for interest and depreciation of $462,000 the trust reported a net loss of $7.6 million.The trust has $306 million of debt in the form of working capital, mezzanine funding and preference shares. It has equity of only $47 million of ordinary units. On June 30 the trust is due to repay a $123 million mezzanine loan to Allco Finance Group. Lander said the trust was negotiating with Allco to extend the facility or convert it to equity but he conceded that was no easy task, given Allco's own need to renegotiate $1.5 billion of debt.Alleasing has a $45 million working capital facility that is drawn to $37 million. The facility rolls over monthly and the provider is also a senior lender to Allco Finance Group.Alleasing is in negotiations to extend the facility.The preference units, worth $142 million, have a 12.29 per cent coupon and mature in August 2009.Lander said Alleasing had been immune from any contagion effects resulting from the reputational damage being suffered by Allco Finance Group but in recent weeks the trust's name has been included in Allco press reports."There is some impact now," he said. The business may suffer a decline in business volumes in the June half as a result.