Babcock bankers issue demands on cash flows
Published 7:41 AM, 3 Dec 2008
Last update 6:58 AM, 3 Dec 2008
Babcock and Brown's banks have issued the embattled investment company with demands it needs to meet as a condition for approving a $200 million lifeline.
The banks are insisting that all dividend payments to shareholders and all interest payments on its subordinated debt be suspended before the loan is approved, The Australian Financial Review reports.
The loan, to keep the bank going until the end of the year, is believed to be waiting on just one signature from the 25-strong bank syndicate.
The funds will be used to meet operating expenses and cover the shortfall Babcock incurred when German Bank HypoVereinsbank froze $140 million in one of its accounts.
Former Babcock chief Phil Green denied rumours that he is in talks with Babcock founder Jim Babcock and private equity firm Terra Firma to launch a bid for the troubled investment bank.
"I'm not involved in any transaction at this point of time relating to Babcock and Brown," Mr Green told the paper.
I think this will happen this week if the lineline is due to be extended bar one bank signing. Bloody French! May not be today, you boys are right might be another suspension this morning.
I respect the BNB team for being able to rally up their stakeholders thus far.
BNB
babcock & brown limited
