if i were the administrator, page-3

Less than 12 months ago the company guided $700 million profit.......before falling into administration, some 6 months later.

An associated company....(owned by BNB)it turns out....has control of the assets of BNB and that associated company, will continue operations, virtually unaffected.

Management...(fair to say they were disgraced, in getting guidance so wrong, and thats for starter)..... then put a deal into place, whereby the secured debtors Banking group are paid 20% pa over and above loan repayments.

After putting this deal in place with the banks and leaving other stakeholders with nothing, key management have since resigned from all involvement of the Babcock Brown group.

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No doubt prior to the asset writedowns, companies like BNB were having a hard time with valuers, especially in the UK and Europe.

Valuer's in these areas are tending to broad brush classes of property with large downward revaluations without regard to the individual quality of the assets held (i.e. tenant, location, construction etc).

Instead of fighting for their shareholders....(same as other REITS are doing now) BNB took an accross the board asset writedown of 35% within a six month period...(thus it fell into administration)

In a normal circumstance an independant third party (ie an administrator)....would look at all options for ALL stakeholders......instead management and the banks put into a place a 20%PA fee, which completely shuts out the chance of other stakeholders getting any return whatsoever.


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Regulators are coy on this whole situation...I know because ASIC tranfered the review of this matter from Sydney to their Melbourne office.....but still no response from ASIC Melb.
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Administrator and regulators must act on behalf of fairness, logic and reason to reverse something that is very wrong here.

The administrator and trustee...(& bondholders)own the assets, not the banks. Sure bank loans must be paid first, but no way should they get an extra 12 or 15% PA over and above their interest and loan repayments.

How can BBIPL be trading solvent, when they can pay bondholder creditos.

I would like to see administrator/trustee send BBIPL into liquidation. Likely or possible that the matter would have to go to Court.......at that point, some real scope for a note holder settlement could be reached.