UPDATE 1-Allco has to pay bigger margin, loan extended

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MELBOURNE, May 30 (Reuters) - Australian asset manager Allco Finance Group (AFG.AX) won a further one-month extension from creditors on a A$250 million ($238 million) bridge loan until June 30, but said it would be paying a much higher margin on its senior debt facilities.

The extension gives the group, which has struggled to refinance hefty debt obligations amid the global credit squeeze, time to continue talks with its bankers to restructure all of its remaining A$862 million in senior debt.

Allco said it had agreed to increase the margin payable under its senior debt to 300 basis points above the relevant currency borrowing reference rate, from 70-95 basis points above.

Allco shares fell 2.9 percent to A$0.495 on Friday in a broader market .AXJO down 0.3 percent. The stock is down from around $6 at the start of 2008, having tumbled in January when debt worries first surfaced.

The group plans to sell assets, to focus on its core leasing business, to help cut its senior debt to A$400 million by September 2009.

It said it would pay A$78.3 million to banks on Firday from completed asset sales, bringing the total repaid since April to A$145.8 million.

Its senior creditors are led by Commonwealth Bank of Australia Ltd (CBA.AX). ($1=A$1.05) (Reporting by Sonali Paul; Editing by James Thornhill)