Interesting article in the Australian. 2 European Banks holding...

Interesting article in the Australian. 2 European Banks holding out - I would imagine they can be brought into line. $6bn in assets including $2bn in real estate. So if the assets need to be worth a minimum of 57% of book value to cover the current debt of $3.2bn and the additional $200mm. There is also the income that is coming in.

A 43% markdown from book value is probably close to the right level, so I can see why the banks are working with BNB. Lets hope there is something left for shareholders. The last line of the article is a worry........

Article is Below

THE immediate future of Babcock & Brown is hanging in the balance.

Two European banks are reportedly not ready to commit to a $200 million short-term rescue plan.

The uncertainty could delay a resumption of trading until tomorrow.

The rescue proposal involves advancing the extra funds and forgiving interest payments due, to give Babcock an extra two months to sell some assets.

The banks' representative, McGrath Nicol, is operating inside the company to ensure commitments are met.

BNB, the head stock company, has about $6 billion worth of assets in its own right, including $2 billion of real estate, European wind farms and US ethanol ventures.

The immediate aim is to sell assets, beginning with the European wind farms, to raise roughly $140 million required to pay Germany's HypoVereinsbank most of what it is owed.

HypoVereinsbank has seized BNB deposits to cover all but $20 million owed by the company.

There are other asset sales pending and the company's future remains unclear.

Australian banks are hoping for sales before the company is wound up.