babcock shareholders to be wiped out

Babcock shareholders to be wiped out

January 23, 2009 - 9:54AM

Babcock & Brown says there will be no value for shareholders under a revised business plan being discussed with the debt-laden investment company's lenders.

"The board believes that in the current market environment and based on continuing discussions with the banking syndicate there will be no value for equity holders under the revised business plan balance sheet restructure,'' the Sydney-based company said in a statement.

Babcock also said there would be negligible or no value for the holders of subordinated notes.

On January 7, Babcock announced that it had a negative net asset position as of December 31.

The investment company now expects to make an announcement regarding the outcome of the discussions late next week or early in the following week.


http://business.smh.com.au/business/babcock-shareholders-to-be-wiped-out-20090123-7o6q.html