The Wall Street Journal-20080130-Allco Finance- Deal Struck to Prevent Sale of Company Shares

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Allco Finance: Deal Struck to Prevent Sale of Company Shares

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Allco Finance Group Ltd.'s employee investment vehicle negotiated a standstill agreement with two margin lenders that will prevent the sale of millions of dollars in company shares in the near term. Shares in Allco Finance rallied 24% to a one-week intraday high of 4.23 Australian dollars (US$3.76) before slipping back to close up 6.5% at A$3.62 yesterday. The deal gives Allco a near seven-month reprieve from forced selling of its shares. The agreement relates to shares of Allco valued at more than A$200 million, including 23.7 million shares held directly by Allco Principals and 29.1 million shares pledged as security to margin lenders.