DJ Babcock Power Bank Debt On Track Despite Varanus - Source11/06/2008 03:00PM AEST SYDNEY (Dow Jones)--The A$2.7 billion refinancing announced by Babcock & Brown Power (BBP.AU) last week will proceed despite the impact of a gas supply disruption on the fund's earnings, a person familiar with the situation said Wednesday.
Babcock & Brown Power, a satellite fund of Babcock & Brown Ltd. (BNB.AU) that owns the Alinta retail energy business, went into a trading halt Tuesday, saying it expected a short-term reduction in earnings after a fire cut supply at Apache Corp.'s (APA) Varanus Island processing plant in Western Australia state.
"One of the reasons Babcock & Brown Power went into trading halt was so that it could go through the Apache situation with the banks, make sure they were comfortable with it, and then proceed as per normal," the person said. "And they are proceeding as per normal."
Babcock & Brown Power is planning to make an announcement Thursday morning on the impact of the gas supply disruption, and affirming that the debt facility is on track, the person said.
BBP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
