Looks like we may have to wait till as late as wednesday for the...

Looks like we may have to wait till as late as wednesday for the head offices of the overseas banks to sign off on the offer.

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Babcock to extend suspension
Eric Johnston
December 1, 2008

BABCOCK & BROWN is expected to extend its share suspension this morning as it hammers out final details of fresh funding agreement with its banks, in a deal that will throw the beleaguered infrastructure funds group a lifeline.

Most of Babcock's 25-strong banking syndicate, including the big four Australian banks, indicated yesterday that they were prepared to support the revised proposal, under which up to $200 million will be injected into the group, giving it time to push ahead with its planned asset sales.

However, Babcock is yet to receive final support for the plan from several smaller European-based banks that require their head offices to approve any new agreement.

People with knowledge of the talks yesterday said that while an agreement looked likely, a final deal - which includes an allowance for penalty interest on the new loan - had yet to be signed.

Babcock will update the market as early as tomorrow but with many banks based overseas this could take until Wednesday to receive final approval. As part of the funding arrangement, Babcock will reduce the amount of banks it directly deals with, and the Australian banks are likely to steer any future negotiations with the banking syndicate.

http://www.smh.com.au/