could this be the "probable bad news"?

in which case...things could be worse...
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Slater & Gordon to investigate Babcock and Brown Power


Law firm Slater & Gordon is set to investigate Babcock and Brown Power Ltd (BBP) over its alleged failure to disclose information regarding its debt and earnings position to shareholders.

Slater & Gordon will start the proceedings after receiving support from interests associated with Californian law firm Wasserman, Comden & Casselman LLP and US-based Australian barrister Julian Hammond.

The investigation will focus on disclosures sent by BBP, between December 2007 and August 2008, which sent its shares into a tailspin, said Slater & Gordon.

"What we saw during this period was the collapse in both share price and trust among shareholders concerning BBP's public statements," the law firm's Victorian head of commercial and project litigation James Higgins said in a statement.

BBP shares tumbled to a low 25 cents from a high of $3.40 during the period.

Mr Higgins also alleged that BBP has been responsible for a number of erroneous statements with regards to its debt refinancing capabilities and ability to pay distribution since its acquisition of Alinta.

"BBP seemed to have a desire to acquire, but once deals were done shareholders were forced to wait to find out the consequences rising form the debt position the company found itself in."

Mr Hammond, who represents a US funding group interested in the local litigation funding market, said BBP shareholders deserved answers for their loss of value.

He also said the US funder was keen to forge a relationship with Slater &Gordon and also develop a litigation funding business in Australia.

"We are very pleased to be partnering with Slater & Gordon on this project and we are keen to develop a litigation funding business in Australia which assists shareholders to obtain access to justice," Mr Hammond said.
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source Business Spectator....staff reporter 19th August





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