Advice from administrator which is more detailed than the brief ASX release. Some positive comments here.
The key question now is...what scope or process can be put into place to stop the unfair, 20% PA bank workout fee over the 99.8% BNB owned operational group.
I have asked the question of the administrator...its fairly simple, although maybe somewhat legal...why can't the owners of BBIPL, ie the noteholders - place BBIPL into administration, such that an independant third party may act on behalf of ALL stakeholders.
If is come to what is right and fair.....NOTEHOLDERS can have a win here. ie unless you think 20%PA fee for banks is appropraite.
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Voluntary administrators appointed to Babcock & Brown Limited
Contact: Colin Drew (note holder and creditor enquiries only) Deloitte Australia Director + 61 (0) 2 9322 5468
Deloitte Corporate Reorganization Group Partners David Lombe and Simon Cathro today were appointed voluntary administrators of Babcock & Brown Limited.
The appointment follows the 13 March voting against the restructure of Babcock & Brown Limited’s subordinated notes by New Zealand noteholders, which in turn, has led the directors of the company to determine that the company is likely to become insolvent.
The role of the voluntary administrators will be to investigate the company’s affairs. They will be writing shortly to noteholders and creditors, to provide notice of the company’s first meeting of creditors, which will be held on 25 March 2009. These meetings will be in Australia and New Zealand.
During the first meeting, the voluntary administrators will ask for creditors to nominate a committee to assist with the administration.
“Our aim will be to seek advice from noteholders and creditors about any matters that need to be investigated and reviewed,” said Mr. Lombe.
“As voluntary administrators, our responsibilities are to creditors and noteholders. As such, we will undertake to investigate the company and all its affairs thoroughly, and will provide our findings to creditors in our Section 439A Report,” said Mr. Lombe.
“Due to the complexity of the matter, it is likely that the voluntary administrators will seek an extension of the standard 20 business day convening period for the second creditors meeting, which will require court approval.
“The voluntary administrators will also ensure that appropriate notices will be provided to the ASX.
“We will also ensure that any ASX compliance requirements are dealt with and maintained during the course of the administration,” he said.
There are approximately 4,500 noteholders in New Zealand and approximately 3,500 noteholders in Australia.
For further general information on the voluntary administration process, please refer to: www.asic.gov.au/insolvencyinfosheets
Refer to www.babcockbrown.com for a copy of the Babcock & Brown ASX announcement with regard to the appointment of voluntary administrators, as well as all other documentation associated with 13 March 2009 noteholder meetings including the “Notice of meeting of noteholders, explanatory memorandum and offer document.”
Also see Deloitte’s Babcock & Brown media releases and communications.
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.
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BNB Price at posting:
32.5¢ Sentiment: None Disclosure: Held
