Allco Principals Trust, the vehicle through which a number of Allco executives and directors hold a block of their shares in Allco Finance Group, has negotiated a standstill agreement with several margin lenders.
Two margin lenders enforced their security over AFG shares last week, while API and AFG sought to renegotiate terms of the loans with other lenders.
The Australian,
Sydney Morning Herald and Financial Review understand that a heads of agreement with the lending banks will be announced as early as today.
Lenders affected appear to include National Australia Bank and may also include Citigroup and Lift Capital, according to The Australian. The newspaper reported that the aggregate loans affected are in the order of $180 million.