UPDATE 1-Allco says banks' loan review period extended

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SYDNEY, April 11 (Reuters) - Allco Finance Group Ltd (AFG.AX: Quote, Profile, Research, Stock Buzz), a highly-geared Australian asset manager, said on Friday it has got an extension for a review by its banks of the terms of its A$1.15 billion ($1.07 billion) loan facilities.

The review was triggered when Allco's market value fell below A$2 billion in January as it struggled to refinance short-term debt facilities in the wake of global credit crisis. The period has now been extended to May 2, Allco said in a statement.

Separately, Allco has submitted a business restructuring plan to its lenders, which if approved would lead to the refinancing of its loan facilities, an Allco spokeswoman said.

Under the restructure, Allco intends to reduce its gearing and sell some of its non-core assets including financial assets and its wind farms.

Allco shares rose as much as 13 percent to A$0.525 on Friday, but reversed course to trade unchanged at A$0.465 by 0119 GMT. They are far from their life high of A$12.61 reached in May 2007.

Shares in Allco, which earns bulk of its revenues from aircraft and ship leasing, tumbled earlier this year along with other highly geared companies such as ABS Learning Centres Ltd (ABS.AX: Quote, Profile, Research, Stock Buzz) and Centro Properties Group (CNP.AX: Quote, Profile, Research, Stock Buzz), on concerns over debt levels. ($1=A$1.07) (Reporting by Denny Thomas;)