Allco-Related Rubicon Trusts May Be in Default

Groups related to collapsed Allco Finance Group warned today the failure of Allco may have triggered defaults on debt facilities, The Australian reported today. Real estate managers Rubicon Japan Trust, Rubicon America Trust and Rubicon Europe Trust Group said they were in talks with various lenders about the implications of Allco Finance's situation. All three entities were suspended from trade. Rubicon America Trust said that defaults on two debt facilities may have been triggered by Allco Finance's collapse, although it was not clear in the documentation for the loans. Rubicon Europe Trust said that a €43.4 million ($83 million) facility from ING could also be in default, but it would seek a waiver. Rubicon Europe said it had sought consent from National Australia Bank on the change of control clause in its facility. Allco Finance was put in voluntary administration on Tuesday after failing to reach agreements with its banking syndicate over further debt extensions. Allco's lenders also appointed a receiver to the firm.