Allco - what might have been...

[Yada Yada]

Allco, the giant that eats itself
Danny John - March 11, 2008

THE debt-crippled Allco Finance Group's woes deepened yesterday after a move to appoint an administrator to its one-time major shareholder triggered the prospect of legal action by another of its own companies.

In an ominous sign that the various operations of the group were beginning to devour themselves, Allco HIT, the Australian Stock Exchange-listed asset financing business, indicated it would pursue steps to recover a $45 million loan to a subsidiary of Allco Principal Investments (API).

Full story

Just imagine if the takeover of Qantas had proceeded. The ensuing mess would have been interesting to watch, especially seeing MacBank squirm. But I wonder what kind of damage it would have done to Qantas?

 

[albatross710]

Allco were making waffer thin % margin on large dollar transactions....everything was good while interest rates were low but they didn't have to rise much to slice through the margins.

The time has come for everyone to become savers for a while.

 

[codash1099]

It amazes me how so many so-called "whiz-kids" (Allco, Centro, ABC Learning) were unable to foresee either a change in interest rates or a downturn in the sharemarkets.

It confirms my view that economists only see straight line projections (up or down) along trend lines.

 

[albatross710]

ahh...so "sensitivity analysis" is supposed to have a best case AND a worst case.

 

[thegurio]

It amazes me how so many so-called "whiz-kids" (Allco, Centro, ABC Learning) were unable to foresee either a change in interest rates or a downturn in the sharemarkets.

It confirms my view that economists only see straight line projections (up or down) along trend lines.

You mean things go up AND down???? Really - according to today tonight its catastrophe when the market goes down by 50 points but when it goes up 200 it's expected... lol

 

[QF WP]

As fears grow about the future of troubled Allco Finance Group, Qantas chief Geoff Dixon says the airline's business will not be affected if Allco were to crash...

 

[Chucksta]

Is this why the QAN share price is declining?

It's quite low at the moment.. maybe a good time to buy some?

 

[NM]

Is this why the QAN share price is declining?

It's quite low at the moment.. maybe a good time to buy some?

Probably more to do with the increasing oil price and expectation that the US and possibly later Australia will fall into recession.