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John Durie | December 03, 2008 Article from: The Australian
BABCOCK & Brown should resume trading on the Australian Stock Exchange again as early as tomorrow with a statement due to be released before the market opens confirming its banking syndicate has finally agreed to extend temporary support with an additional $200 million in funding. The extra funding pushed by the Australian banks was initially opposed by some offshore banks with first Societe Generale and then two German banks refusing to agree to the deal.
But after another long discussion the Germans have now agreed and are expected to sign the supporting documents tonight.
The German banks involved were West LB and Hypo Vereinsbank.
The money, which includes $150 million in extra funding and interest payments, will only last another two months unless Babcock can sell a range of assets including some European wind assets .
The banks will also have McGrath Nicol working inside Babcock to do more due diligence and ensure the failed investment bank follows through with its commitments.
BBI Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
