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"SG says it will continue to honour all commitments under this facility consistent with normal operations. Allco Max says the decision does not reflect on the operational performance of the Allco Max business.

Allco uses the facility to acquire assets prior to issuing medium term notes to the wholesale debt markets under its own name. The balance of the warehouse facility is currently $223 million.

Allco said SG’s action does not affect the existing Allco Max portfolio or the existing $535 million of medium term notes issued to the market. All loans in the current portfolio continue to perform and Allco Max has not recorded any credit losses to date.

Allco Max was in discussions with other banks on the provision of additional warehousing lines prior to being notified of SG’s decision, and will pursue opportunities to secure replacement warehouse lines and/or alternate financing arrangements to facilitate future asset acquisitions and continue the growth of the portfolio."