Allco Finance, the Australian asset manager that joined forces with Texas Pacific Group and Macquarie in the failed A$11bn (US$7.7bn) buy-out bid for Qantas Airways, has collapsed into receivership owing close to A$1bn.

The group had been trading at the mercy of its banks for months as it tried to sell assets in a failed attempt to restore a balance sheet devastated by a debt-fuelled acquisition spree near the top of the market.