This was from the 4th of Dec....Negotiation on Long Term Capital...

This was from the 4th of Dec

....Negotiation on Long Term Capital Structure
The agreement contemplates that by 28 February 2009, Babcock & Brown will
propose a longer term capital restructure, which is expected to include a debt
for equity swap, acceptable to its banking syndicate. The agreement provides
for this to be implemented by 30 April 2009.
Mr Larkin continued, ¡§We remain focused on reducing debt levels while
managing the business to meet our obligations and preserving the value of our
assets and funds management platform. We will continue to seek to maximise
value for all stakeholders through an orderly asset sale process which is
expected to take place over the next two-three years. During this transition
period there may be significant volatility in the earnings base of the business.
¡§We appreciate that this is an extremely difficult period for all Babcock & Brown
stakeholders. The Board and senior management would like to thank all
stakeholders for their ongoing commitment and support.¡¨



Back then they didn't say anything about dilution!