7 Feb 2009

Investment company reaches agreement with banks

9:54 am on 7 February 2009

Babcock & Brown Ltd has reached agreement with its bankers on re-structuring its corporate debt.

The debt-laden investment company says a revised business plan has also been agreed.

Under the agreement, a $A150 million short-term facility and two other existing $A2.8 billion and $US200 million corporate facilities will continue. However, details of the deals and repayment dates are changed.

Company assets will be sold over two to three years to reduce debt.

Babcock & Brown has corporate debts $A2.8 billion and $A6.4 billion in limited recourse debt, as well as a $A150 million loan which was secured on 5 December 5.