According to the prospectus. BBIPL guarantee the notes, because of the trigger event. The notes have become immediate payable debt to a face value of $100 each. It is not sub ordinated notes anymore. Therefore as unsecure debt holders, we can demand cash back from BBIPL now. Or we can put BBIPL into administration. The bankers hold secure debt. However, they have given an extension. Therefore their debt is not immediately payable. On that basis, I think noteholders have a very good case to put BBIPL into administration... yes, we are subordinate.. but our debt is immediate payable.
Guarantor Babcock & Brown International Pty Limited (BBIPL).
Guarantee BBIPL guarantees any amounts which become due and payable by Babcock & Brown on BBSN.
Claims under the Guarantee are subordinated to the claims of all creditors of BBIPL (other than
creditors whose claims are expressed to rank after or equally with the claims of Holders under the
Guarantee), but in priority to the claims of BBIPL shareholders.
No restrictions The Trust Deed does not restrict BBIPL from entering into any transaction or from acquiring and
disposing of assets, entering into any borrowing, guarantee or indemnity and creating and issuing
further guarantees, loans or other equity or debt securities including securities or other indebtedness
ranking ahead of claims of Holders under the Guarantee, other than entering into any encumbrance in
its favour from Babcock & Brown, while the moneys owing under the Guarantee are still outstanding.
Impact on Deferred As the payment of interest is subject to deferral conditions, the Guarantee does not ensure that interest
Interest will be paid in all circumstances. For a more detailed description of the Guarantee, see Section 8.4.
Further BBIPL BBIPL may require the Trustee to execute on behalf of itself and all Holders such documents as
Guarantee BBIPL considers necessary or desirable for the purposes of the subordination of the Guarantee to
subordination any indebtedness or guarantee of BBIPL which ranks ahead of claims of Holders.
No restrictions Babcock & Brown may enter into any transaction without restriction including acquiring and
disposing of assets, entering into any borrowing, guarantee or indemnity and creating and issuing
further BBSN or other equity or debt securities including securities or other indebtedness ranking
ahead of the claims of Holders without the consent of Holders or the Trustee.
Subordination on BBSN are subordinated to the claims of all creditors of Babcock & Brown other than creditors
payments whose claims are expressed to rank equally with or after the claims of the Trustee or a Holder under
or in respect of its BBSN. Babcock & Brown may issue debt ranking ahead of BBSN in right of any
payment including payment of interest and on a Winding Up.
Winding Up On a Winding Up, the rights of Holders are subordinated in right of payment to the claims of any
creditors of Babcock & Brown from time to time other than claims stated to rank equally with, or
after, the claims of Holders.
Further Babcock & Brown may require the Trustee to execute, on behalf of all Holders, such documents
subordination as Babcock & Brown considers necessary or desirable for the purpose of the subordination
documents of BBSN to any indebtedness of Babcock & Brown which ranks ahead of, or equal to, claims
of Holders.
BNB
babcock & brown limited
