BABCOCK & BROWN – MANAGEMENT AGREEMENT• Substantive Terminationo...

BABCOCK & BROWN – MANAGEMENT AGREEMENT
• Substantive Termination
o Since December 2008 B&B has not had any involvement in the Board or management of BBP
• Legal Termination
o Termination expected no later than coincident with B&B Bank Syndicate loan restructure – at no cost
o New Name – to be voted on at AGM
o Move from Chifley Tower in early September 2009

UPDATE ON CAPITAL RESTRUCTURE
7
• Comprehensive sale process conducted by UBS
o Some parties remain engaged
• Challenges for bidders
o Illiquid debt markets
o Uncertainty regarding Babcock & Brown – debt and management agreement
o Deteriorating short-term earnings outlook for BBP
o Outstanding operational issues with respect to gas supply and pricing
o CPRS uncertainty
• Work-through has been substantially advanced
o Announcement made at the 1H09 results that the ‘longer term work-through’ option was being considered
o Work on this option has been progressed actively since that point
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Debt :
Over $1.4Bn was repaid or transferred in FY 2009 through a combination of asset sales and business
cash flows. This reduced the levels of debt within BBP group to debt at the BBP level, debt at the BBPF
sub group level and limited recourse project financing secured against Oakey and Redbank power
stations respectively.