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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”.
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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