extension of debt

Good news out. Extension of debt until March 2009. Powerco sale to pay debt.

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18 December 2008
Babcock & Brown Infrastructure - WestNet Rail
Babcock & Brown Infrastructure (ASX: BBI) announces that Babcock & Brown WA Rail Holdings Pty Ltd (Trustee of Babcock & Brown WA Rail Trust) has agreed an extension until March 2009, of the approximately $66m Mezzanine Debt repayment that was due on 15 December 2008. This extension is to allow the obligations to be satisfied from the expected Powerco sale proceeds together with other operating cash flows from BBI’s businesses. The sale of 50% of Powerco as announced on 4 November 2008 is expected to complete in the first Quarter of 2009.
BBI is also in negotiations relating to a commitment to purchase an additional economic interest in the WestNet Rail Group. This obligation falls due on 19 December and BBI is negotiating with the party concerned regarding an extension of the time for payment, such that this obligation can also be paid from the expected Powerco sale proceeds together with other operating cash flows from BBI’s businesses.
BBI expects to confirm the outcome of these negotiations in due course.
BBI Rail Holdings Pty Ltd is a wholly owned subsidiary of BBI and in turn directly and indirectly owns 76% of Babcock & Brown WA Rail Trust which holds the assets of the WestNet Rail Group.