babcock considers extended suspension

Might be another extension today till they get the french to sign off.

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Babcock considers extended suspension
Eric Johnston
December 3, 2008

BABCOCK & Brown was last night mulling further extending its trading suspension as talks continued with its banking consortium over a new funding deal.

Babcock has encountered a late hitch in its attempt to secure up to $200 million in extra funds, with one European-based lender trying to engineer its exit from the 25-member bank syndicate.

Babcock on Monday extended its trading suspension until this morning after a new funding deal and debt restructure was to be finalised this week. But resistance to the deal by French-based Societe Generale has raised further doubts over Babcock's ability to fend off administration given that it would struggle to repay $3.1 billion of loans.

Babcock shares have been suspended since November 20, when it was forced into talks with lenders after a dispute arose over the release of more than $100 million held in deposit by a key banker, HypoVereinsbank. The German-based bank froze the funds to bolster its security over loans tied up in Babcock.

http://business.theage.com.au/business/babcock-considers-extended-suspension-20081202-6pu9.html