ann delisting event

ASX Release
10 February 2009
UPDATE SUBORDINATED NOTES – DELISTING EVENT
Babcock & Brown (ASX: BNB) today advises that a Delisting Event (triggering
requirements which ultimately lead to Babcock & Brown subordinated note
holders becoming entitled to request repayment) has occurred following the
suspension from trade of the Babcock & Brown Limited ordinary shares for a
period of 20 consecutive business days.
As advised in the ASX announcement on 6 February 2009, Babcock & Brown
has been considering the implications of the Delisting Event and also a possible
restructure of the subordinated notes. Any restructuring proposal relating to the
notes will be subject to special resolutions to be put to holders of the notes
issued in Australia and the holders of notes issued in New Zealand and the
restructuring being able to be implemented by 15 March 2009, the next interest
payment date for the New Zealand notes. No assurance can be given that a
restructuring will be achievable.
In the absence of the restructuring of the subordinated notes taking place it is
likely that Babcock & Brown Limited, the listed entity, will be placed in
administration within the coming weeks. If that occurs, it is also likely that the
shares of Babcock & Brown Limited will be delisted from the ASX. An
administration of Babcock & Brown Limited, if that occurs, will not affect the
solvency of Babcock & Brown International Pty Ltd, the primary operating
company in the Babcock & Brown Group and borrower of the corporate debt. It
will continue to operate and implement the revised business plan, including the
asset sale program as outlined.
A letter detailing the implications and actions that can be taken by note holders
as a result of the Delisting Event will be sent to investors and lodged with the
ASX over the next few days.
Babcock & Brown proposes to seek a continuation of the suspension of its
shares and subordinated notes at least until details of any restructuring in
relation to the subordinated notes can be announced.