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Allco Finance Group, parent of white label sub-prime lender Mobius, was placed into administration over night after an almost 12 month long battle to stay afloat.
In a statement to the ASX, the group said “the action was taken following the directors’ careful review of the company’s future”.
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Mobius stopped receiving applications for new mortgages in February this year; it is yet unclear whether broker trail commissions will be impacted by the decision to place the business into administration.
The major Australian banks also face the prospect of further write-downs on their debts due to multi-million dollar exposures to the group.
Westpac has an exposure of approximately $250 million, its soon-to-be subsidiary St George a further $35 million, and CBA $200 million.
Published: 05-11-08
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