babcock must halt dividend 2 win loan frm bank

http://www.bloomberg.com/apps/news?pid=20601081&sid=aPDo.FoWYwfo&refer=australia

Babcock Must Halt Dividend to Win Loan From Banks, Review Says
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By Angela Macdonald-Smith

Dec. 3 (Bloomberg) -- Babcock & Brown Ltd.’s lenders demanded the company halt dividends to shareholders and interest payments on subordinated debt as conditions for granting a A$200 million ($128 million) loan, the Australian Financial Review said.

The loan would keep Babcock & Brown operating until the end of the year and one member of a 25-strong banking group has yet to agree to the new credit, the newspaper reported, citing unidentified people close to the company.

Babcock & Brown made an urgent request to its banks a week ago for extra funds, the Review said.

A small group of lenders, including Australia’s four biggest banks, agreed to provide the additional funds, which would take priority over existing facilities, the Review said, without citing anyone.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at [email protected]
Last Updated: December 2, 2008 16:03 EST