reason for th

From Melbounre Sun

Babcok and Brown today requested a trading halt on its shares as it tries to sort out a dispute with a bank about the release of a deposit.

"The reason for the trading halt is that we are in dispute with a bank which holds a deposit of a material amount relating to the release of that deposit," B&B said in a statement.

"It is expected that the trading halt will end upon resolution of that dispute."

B&B yesterday announced it would cut its workforce by 59 per cent over the next two years as it transforms itself into a specialist infrastructure business and sells its remaining assets and operations.

The company expects to reduce its operating costs by more than 50 per cent by the end of 2010 and pay off more than half of its $3.1 billion debt burden by 2011.

It also has begun talks with its bankers about altering the covenants attached to the corporate debt facilities because the current tough market conditions means it will be harder to meet those requirements in the short term.