bbp, lenders in talks to amend a$2.6 bln loa, page-6

Nick, I am sure there would have been constraints attached to agreeing to the revised loan terms below, including some say in the sale of major assets.


RENEGOTIATION OF TERMS OF BABCOCK & BROWN LOAN
Babcock & Brown Power (ASX:BBP) today announces that the terms of $381 million of debt owed to Babcock & Brown (ASX:BNB) have been renegotiated.
The renegotiated terms are summarised as follows:
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The repayment date for the debt is March 2010. The debt was originally repayable in two tranches; $179 million in September 2009 and $202 million in January 2010 (based on amounts outstanding as at 31 December 2008).
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Interest accruing on the debt will be capitalised, with payment of the capitalised interest deferred until March 2010.
BBP is currently negotiating to further extend the maturity date for the debt to a period beyond 2010.
Ross Rolfe, CEO of BBP, said “The outcome of our negotiations with BNB to defer repayment of and capitalise interest on the BNB debt is positive for BBP. It further strengthens the BBP balance sheet by extending the debt maturity profile and improves liquidity through deferral of interest payments.”