Overview
Babcock & Brown announced a revised business plan in conjunction with the restructure of its corporate debt facilities on 6 February 2009. The revised business plan provides for a management-controlled program to sell down assets owned by Babcock & Brown across all asset classes to reduce the level of bank debt. The revised plan allows for an orderly asset sale process over a 2-3 year time horizon, so as to avoid an immediate forced sale of assets in the current market environment. Surplus cash proceeds realised from the asset disposal program, over and above the amount required to continue operating the business (including all statutory and contractual entitlements and redundancy payments for employees in accordance with the Company’s current policy), will be applied to reduce the corporate debt facilities. ..
Babcock & Brown Limited was placed into voluntary administration on 13 March 2009. The appointment of administrators to Babcock & Brown Limited is not expected to have any material impact Babcock & Brown International Pty Ltd (BBIPL) the main operating and asset owning entity of the Babcock & Brown Group. BBIPL will continue to operate and will proceed with the orderly realisation of assets over an approximate 2-3 year time horizon to reduce debt. The management team will focus on ensuring that the value of assets and business platforms is preserved during this process and all assets and businesses continue to be managed appropriately and that all legal commitments and regulatory requirements are met.