did shareholders get ponzied?, page-6

Babcock Executive Pay Plan Raises Ire of Lenders, Review Says
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By Gemma Daley

Jan. 22 (Bloomberg) -- Babcock & Brown Ltd. has raised the ire of some of its bankers for offering executives millions of dollars in bonuses even as it’s on the brink of collapse, the Australian Financial Review reported.

Babcock’s 25 banks, considering a rescue package that includes a major capital restructure and repayment of A$3.5 billion ($2.3 billion) of debt, have cited the pay for executives and corporate advisers Goldman Sachs JB Were Ltd. and Deutsche Bank AG as the biggest obstacle, the newspaper reported, citing bankers it didn’t name.

To contact the reporter on this story: Gemma Daley in Canberra at [email protected]