bbp ann on bnb voluntary administrator

13 March 2009
IMPACT OF APPOINTMENT OF 13 March 2009

IMPACT OF APPOINTMENT OF VOLUNTARY ADMINISTRATOR TO BABCOCK & BROWN LIMITED

Babcock & Brown Power (ASX:BBP) notes the announcement made by Babcock & Brown (ASX:BNB) today concerning the appointment of a Voluntary Administrator to Babcock & Brown Limited (BBL) pursuant to Section 436A of the Corporations Act 2001.

BBP will closely monitor the situation, but does not currently expect there to be any direct impact on the ongoing operations of BBP.

The relationship between BNB and BBP has a number of components including as the Manager of BBP, as lender to BBP and as a securityholder of BBP.

1.
Management structure of BBP
The Responsible Entity of BBP - Babcock & Brown Power Services Limited (BBPS) and the Manager of BBP - Babcock & Brown Power Management Pty Ltd (BBPM) are subsidiaries of Babcock & Brown International Pty Ltd (BBIPL).

A voluntary administrator has not been appointed to BBIPL or to BBPS or to BBPM. Accordingly, BBPS and BBPM can continue to operate as the Responsible Entity and Manager respectively of BBP.

As previously announced, BBP is in negotiations with BBIPL to separate the management of BBP from any entity within the BNB Group. BBP is in ongoing discussion with all lenders in relation to any such outcome and does not expect it to have any material impact on BBP’s financing arrangements.

2.
BNB as lender to BBP
As at 31 December 2008, BBP had approximately $381 million in drawn loans from subsidiaries of BBIPL maturing in March 2010. These loans are on commercial arms length terms with subsidiaries of BBIPL and there is no requirement to repay these loans upon the appointment of a Voluntary Administrator to BBL.

3.
BNB holds 9% equity in BBP
BBP has no knowledge of the intention of the BNB Group with respect to its approximate 9% equity stake in BBP.
ENDS TO BABCOCK & BROWN LIMITED Babcock & Brown Power (ASX:BBP) notes the announcement made by Babcock & Brown (ASX:BNB) today concerning the appointment of a Voluntary Administrator to Babcock & Brown Limited (BBL) pursuant to Section 436A of the Corporations Act 2001.

BBP will closely monitor the situation, but does not currently expect there to be any direct impact on the ongoing operations of BBP.

ENDS