court settlement, page-11

IT WAS the nation's biggest ever corporate collapse, with losses totalling upwards of $10 billion. But those responsible for the debacle that was Babcock & Brown are now in the process of buying their way out of trouble.

Less than a fortnight ago, liquidators of the once high-flying investment group launched legal action against the directors and its auditors, Ernst & Young, to recover $160 million in damages. It appears a settlement between the aggrieved parties is already afoot.

If accepted, this could potentially bring to a close one of the most shameful periods in Australian corporate history. Launched on the stock exchange as an investment vehicle in late 2004, Babcock & Brown soared from day one, its $5 shares peaking at close to $32 on the promise that it would rival Maquarie Group.


Read more: http://www.smh.com.au/business/watchdog-didnt-even-sniff-babcock-20110831-1jm01.html#ixzz1YXOeukiQ