NAB Appoints Receiver, Takes a Provision for Rubicon

National Australia Bank Ltd. said it has appointed a receiver to Allco Finance Group Ltd. unit Rubicon Holdings Australia, which manages three listed trusts, following Allco's collapse last week, the Wall Street Journal Asia reported today. NAB said it has appointed accounting and services firm Deloitte to oversee Rubicon Holdings, and that it would take a provision for its 20 million Australian dollar (US$13.3 million) exposure to the Allco unit. After Allco's collapse, Rubicon Holdings said it was "no longer able to continue as a going concern" and "invited NAB to appoint a receiver" to its assets. The move doesn't mean that the trusts Rubicon Holdings manages are in receivership and "they currently remain going concerns," it said. NAB said it has lent about A$170 million to the trusts. "These borrowings are secured by assets, the trusts are performing and no material losses are anticipated," the bank said. Read More (Subscription required.)