From SMH business page http://business.smh.com.au/Babcock &...

From SMH business page http://business.smh.com.au/


Babcock & Brown shares in trading halt
January 8, 2009 - 10:50AM

Babcock & Brown shares have gone into a trading halt as the investment firm waits for a complete response from its lenders to its capital restructure proposal.

Babcock said in a statement that its banking syndicate had indicated they would provide a partial response to the proposal on Thursday.

The firm expects the trading halt to finish when the syndicate provides a complete response, which should happen before January 12.

Babcock said on Wednesday that its books were likely to show a ''substantial'' negative net asset position as of December 31 when it reports its full year results next month.

The investment firm made the statement after the market closed on Wednesday, saying progress on the review process for its 2008 accounts showed the negative asset position would result from a reclassification of non-core assets on the balance sheet as assets available for sale.

The Sydney-based firm said any capital restructure was expected to ''significantly dilute existing shareholders, negatively impacting the value of equity.''

AAP

I presume that "Negative asset position" means it has no intrinsic value?