UPDATE 1-Allco Finance executive directors step down

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SYDNEY, March 3 (Reuters) - Troubled Australian investment company Allco Finance Group (AFG.AX: Quote, Profile, Research) said on Monday David Coe, Gordon Fell and David Turnbull would step down as executive directors.

All three would remain involved with the management of the group's businesses, while the board would look for a new independent chairman.

Shares in Allco, which earns the bulk of its revenues by leasing aircraft and ships, have slumped this year and fell more than 60 percent on Feb. 25, on concern over its high debt levels, triggering problems with its lenders.

Allco said on Monday it was in "constructive discussions" with its lenders to restructure debt.

Allco plans to sell some assets as it tries to meet debt refinancing deadlines. The company's market value has shrunk to just one-tenth of its value last May, prompting banks to call in loans.

Allco shares last closed at A$0.87 each. (Reporting by Victoria Thieberger; editing by Richard Pullin)