"On 4 September 2009, the Group announced that it is engaged in...

"On 4 September 2009, the Group announced that it is engaged in a
comprehensive equity recapitalisation transaction combined with
sales of certain assets. The Group is in active dialogue with a
potential cornerstone investor as part of this potential
recapitalisation. The terms of the transaction with the potential
cornerstone investor have been discussed (although the structure
and details of any such transaction are not yet finalised).
A comprehensive recapitalisation on the terms discussed requires
the consent of the lenders and the Group has approached the
lenders to obtain their consent to the recapitalisation.
As part of the recapitalisation, it is likely there will be a requirement
for full conversion of EPS and SPARCS in advance of, and in order
to facilitate any equity recapitalisation. The ownership interests
of ordinary Securityholders, EPS holders and SPARCS holders
post‑conversion will be significantly diluted by the recapitalisation.
The transaction mechanics, including any conversion of the hybrid
securities and the basis on which it would occur, have not been
determined. The value outcomes for ordinary Securityholders,
EPS holders and SPARCS holders are not certain and may attribute
a value to those securities that is less than the face value or recent
trading prices. Furthermore, associated sales of assets with current
book values totalling approximately $7.0 billion may be at amounts
lower than their current book value and result in an impairment
charge of approximately $900.0 million, should the contemplated
transaction proceed.
In recognition of the time and cost commitment required of the
potential cornerstone investor, Babcock & Brown Infrastructure has
entered into an interim agreement with the cornerstone investor
to continue to negotiate in good faith the development of the
proposed transaction. This agreement includes a non‑solicitation
obligation on Babcock & Brown Infrastructure, a capped cost
reimbursement provision in favour of the cornerstone investor
and a three month right of first refusal over the sale of certain
assets, if Babcock & Brown Infrastructure chooses to seek to sell
those assets.
The process of finalising transaction terms and obtaining bank
approvals is anticipated to take several weeks. There is no assurance
that agreement will be reached in relation to any transaction."