News wires now carrying details of the administrators report.
Bondholders (creditors) have to wait until Monday to get a copy of the report.
-----------------------------------------
Disappointed in the report...well YES
The ongoing and fully operational arm of Babcock Brown BBIPL, owes $600m to bondholders now and is controlled by the banking group. The fact that BBIPL may be trading insolvent....apparently is not a concern to DELOITTE.
Rather the administrator is focusing on the role of Directors within the shell BNB.
So much for the banks being able to impose a 20% PA fee...nothing to stop them now from increasing that to 30 or 40%.....in fact make up their own rules to deny other creditors any possibilty of a return.
Woild like this matter to be handled exclusively by IMF now...who would do their diligence and may proceed to litigation, independant of the trustee and DELOITTE.
------------------------------------------------
Liquidation recommend for B&B
The voluntary administrators of investment firm Babcock & Brown Ltd (BBL) have recommended the company be placed in liquidation.
Voluntary administrator David Lombe of Deloitte said liquidation was the only option because no deed of company arrangement had been proposed.
"Liquidation will allow us to investigate the matter in greater depth, conduct public examinations and as a liquidator receive increased powers to commence recovery actions," Mr Lombe said in a statement on Friday.
The administrators said they wished to investigate potential conflicts of interest between the boards of BBL and Babcock & Brown International Pty Ltd (BBIPL) -- the main operating and asset-owning entity within the BBL group -- and the possibility of inadequate disclosure regarding public offer documents.
The administrators also wished to review the risk management processes and policies in relation to the business model, and the overall solvency of the group at various points and associated issues.
They also wanted to investigate the timings of impairments of assets.
Creditors will be asked to vote for liquidation at a second meeting of creditors to be held in Sydney on August 24.
Debt-laden BBL was placed into voluntary administration on March 13 at the request of the BBL board, after a majority of some 8000 noteholders rejected a planned restructure of their debt.
BBL owes about $A3.2 billion in interest-bearing debt to local and international banks.
BBL had borrowed heavily to buy infrastructure and property assets to on-sell to third-party investors in funds it managed for a fee.
Ad Feedback Sponsored links
Next World story:
Australian economy ‘resilient’: RBA
Business HomepageShare this page Email Facebook Myspace Digg StumbleUpon Delicious Reddit
BNB
babcock & brown limited
