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SYDNEY -- Babcock & Brown Infrastructure Group is in negotiations with an unnamed investor that may take a substantial stake in the Australian company, potentially saving it from further asset sales in a depressed market.
The owner of global transport and energy infrastructure assets requested Wednesday that trading in its securities be halted, "pending an announcement regarding a possible arrangement with a potential cornerstone investor to work towards a recapitalization transaction."
BBI said it expects to make an announcement about the possible arrangement before trading recommences on Friday.
The company is in the middle of a sweeping asset-sale program as it struggles to break free of the grip of its lenders and looks to sever its relationship with its manager, failed investment firm Babcock & Brown Ltd.
BBI, with a market capitalization of just over 200 million Australian dollars (US$167.6 million), has more than A$3.5 billion in debt maturing in the next two years, including A$750 million in corporate debt.
After announcing an annual loss last week of nearly A$1 billion, BBI said it is awaiting bids for its Dalrymple Bay coal terminal in Australia and PD Ports business in the U.K.
On Wednesday, a spokeswoman said the company's immediate priorities included ensuring it could meet a recently extended £100 million (US$162.3 million) debt maturity in October, and a £82.2 million corporate debt facility maturing in February.
http://online.wsj.com/article/SB125191211083580237.html
BBI
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