AFG 4.40% $2.39 australian finance group ltd

has massive insider trading occured

  1. 6,716 Posts.
    Late last Wednesday, Allco made an annoucement about the cirucumstances of the coming into existence of a default trigger on 9 January, and its failure to disclose the existence of this default trigger until last week. The trigger gave its banking syndicate the right for 20 days to call in Allco's loans, which would effectively bankrupt Allco. Allco subsequently extended this right for another 2 months.

    Allco argues that since this was not an actual default, it was not a matter which had to be disclosed and therefore it wasn't.

    This rather misses the point.

    Since the information was not disclosed, it was inside information. This inside information was in the knowledge of Allco, its advisors, Allco's banks, and their advisors.

    The existence of an armed default trigger is clearly sensitive information.

    If any of Allco's exectives, it's advisors, its banks, their associated investment funds, and the bank's advisors, were trading in Allco shares since 9 January, they were trading in possession of inside information.

    So which banks were they ?

 
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