babcock & brown infrastructure's (bbi) dalrymp, page-45

Hi Melua,

"They can meet their debt commitments out of free operating cash flow. They don't need to sell anything to make their interest payments."

Does this include their interest commitments on the corporate debt? If this is the case, why is there a need to reduce the corporate debt from asset sales.

Unless of course a large chuck of the corporate debt is due to be paid out in the next 6-12 months. This is assuming the banks would not refinance their BBI's debt.

But why wouldn't the bank refinance it if BBI is making all its interest payments and have $250mil per year left over after all expenses. I mean the banks are effectively making good profit from all those interest repayments by BBI.