Babcock & Brown Power could face some lengthy negotiations as it attempts to allay the concerns of an increasingly nervous banking syndicate, an informed source told Xchange. The debt-laden B&B offshoot suspended its shares from trading last week, as it cut profit guidance ahead of a review of its banking covenants on $2.7 billion of debt.
At the time BBP said it hoped to provide "further clarity" on those discussions by the end of this week, but it is understood BBP is a long way off resolving the bankers' worries.
It could be a few more weeks before the bankers' concerns are put to rest, the source said, and the relationship with failed parent, Babcock & Brown, only complicated matters.
BBP Price at posting:
10.0¢ Sentiment: None Disclosure: Held