Story from todays Australian. Once again, Chairman Nosworthy...

Story from todays Australian. Once again, Chairman Nosworthy outwardly showing concern for demise of the company.......(as she resigns as Chairman - after overseeing its demise.)

Begs the question - Ms Nosworthy, why did you agree to a 20% pa fee payable to the bank?.....(such that as stated, nothing would be left for other stake holders other than the banks). That fee at a time when interest rates are at historic lows.

Why choose now to resign?...I wish you would have left prior to now, such that a more responsible management team, could have acted for their employees . ie shareholders.

This is an appauling situation that Nosworty has left for those with equity in the company....other than the banks.


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Jimenez | May 02, 2009
Article from: The Australian
THE last vestiges of once mighty investment bank Babcock & Brown were yesterday erased, with chairwoman Elizabeth Nosworthy and chief executive Michael Larkin among four directors to resign.

In announcing the resignations, the administrators of the collapsed group said they had not been involved in any discussions with the directors leading up to their decision to resign.

Administrator Deloitte Touche Tohmatsu also said they were seeking "legal advice around the proposed resignations" from Babcock and the "implications thereof".

Other directors to resign were Pat Handley and Ian Martin.

Deloitte is undertaking an investigation into the demise of the investment banking house, which went into voluntary administration in March with debt of about $3.1 billion.

"We wanted to wait until such time as we lodged accounts ... which has been done, so now our usefulness as members of the board of that company are over and accordingly we have resigned," Ms Nosworthy told The Weekend Australian yesterday.

Babcock lodged its last set of profit results -- for the first half -- in August last year.

About 8000 subordinated noteholders are reportedly owed about $600 million and keenly await the company's accounts to see how much they may get back.

Ms Nosworthy said everyone associated with the board and management of Babcock was "absolutely devastated " about what had happened.

"We have been very cognisant throughout our duties, we've taken legal advice at every turn and I'm very confident that what we've done will stand scrutiny."

Ms Nosworthy said her conscience was "absolutely clear" and that she was "not concerned" about the investigation.

Despite stepping down from the holding company, Ms Nosworthy and Mr Handley remain directors of the operating company Babcock & Brown International (BBIPL), which holds the key valuable assets. *

Mr Larkin remains chief executive of Babcock & Brown International, but Mr Martin has resigned as a director.

The administrators said they were not in a position to comment on any impact that the resignations might have on the investigation going forward, but believed they had sufficient powers under the Corporations Act of 2001 to obtain the information required to satisfactorily conclude the investigation.

Mr Larkin was until August last year the finance director of Babcock & Brown, when he was elevated to the role of chief executive, following the resignation of Phil Green. On the same day, Ms Nosworthy was appointed chairwoman.