Allco went into administration i.e. bankruptcy today. Allco Equity Partners announced that they are terminating the management agreement with Allco and will in future themselves employ the Allco managers seconded to the company. A name change is coming up. The upside is that this cuts the links with the embattled Allco Finance Group which I think has contributed to the exceptionally depressed state of AEP's share price. The downside is that the Allco administrators can now sell AFG's shareholding in AEP which could keep the share price depressed in the near term.
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