Shares in Allco Finance rebounded on Thursday after the Australian structured finance group moved to reassure the market that its financial position was sound.

On Wednesday one of the Sydney-based group’s biggest shareholders was forced to sell a large block of shares in order to meet margin calls, pushing shares in the company down 26 per cent to A$2.21. But news on Thursday that Allco Finance was in talks to prevent a similar forced sale, which it blamed for Wednesday rout, helped the shares rise 29 per cent to A$2.86.