Babcock & Brown Power to settle $444 million Babcock & Brown debts and fees
07 Dec 2009
Australian power generation fund Babcock & Brown Power today said that it has agreed to settle around $444 million in debts and fees of its manager, a unit of failed investment bank Babcock & Brown.
The company also said it has terminated the management and advisory agreements with the unit.
According to BBP it will extend Babcock & Brown International Group up to $37.7 million in cash, 80.73 million shares in BBP and the proceeds from the sale of its stake in the Oakey Power Station in Queensland.
The deal will depend on a successful debt restructure with BBP's bank syndicate, approvals of security holder and a satisfactory binding agreement from discussions still underway with the North West Shelf Joint Venture over Western Australia gas supplies.
BBP said the talks would conclude in 'coming days' and it will then apply to recommence trading on the Australian Stock Exchange.
BBP shares remain suspended from trading for the past month, and in last trading fetched 7.6 cents, a fraction of their 2007 peak at $3.80.
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