Even casual observers of the demise of the listed BNB....would be coming to appreciate now, that in fact operations of Babcock & Brown, will continue as per normal under the same management team, as the failed BNB. The same management that agreed to a 20% PA fee to the banks.... which leaves zero for other company stakeholders.
This is what the company has said:
"The appointment of administrators to Babcock & Brown Limited is not expected to have any material impact Babcock & Brown International Pty Ltd (BBIPL) the main operating and asset owning entity of the Babcock & Brown Group."
Simply means its business as normal....existing creditors, landlords, staff wages etc you name it all get paid - slight problem is that shareholders and noteholders receive nothing.
----------------------------------------------------
BNB (under Administration) own BBIPL
........its fair to say that over at BBIPL, things may not be too bad, everything considered.
Mangement have their jobs, and the banks may well get their 20% PA (on outstanding $2.2 bilion debt) for an indefinate period....ie $400m PA). Business goes on as before, say the management.
Is it not obvious what the job of the administrator should be all about?.....do the noteholders have a particular regard for the future of BBIPL.
Well as a noteholder...(and in view of the 20%PA fee) I certainly don't.
Given BNB own BBIPL - I would ask and have asked the administrators of BNB, to bring about the DEMISE of the asset they own ie.....BBIPL.
Such a result would only be positive for noteholders, as an independant third party could look at what is fair for all concerned.
Critical to this whole process....should be, the ability of the administrator to open up some meaninfull negotiations with BBIPL, whereby banks and management can sell off the assets.....but only after a fair payout has been made to noteholders.
BNB
babcock & brown limited
