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BBL shareholders now free to investigate tax options


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The Voluntary Administrators of Babcock & Brown Limited (BBL), David Lombe and Simon Cathro, have today released a statement that may allow certain shareholders to access capital losses in the tax year to 30 June 2009.

The statement applies to capital losses incurred by shareholders of BBL, not to noteholders or creditors.

Mr Lombe confirmed that the Voluntary Administrators have made substantial progress in their investigations into the affairs of BBL, and that it is view of the Voluntary Administrators that shareholders will have no ongoing economic interest in BBL.

“What this means in practical terms for shareholders is that they are now in a better position to seek professional advice as to the tax consequences of the voluntary administration of BBL,” said Mr Lombe.

Reducing overheads: termination of BBL’s ASX and NZX listing

As part of the investigation to date, the Voluntary Administrators have investigated the various options to utilise BBL as a listed shell, but have concluded that there is no scope to extract any value for creditors.

“There is no likelihood that the holders of ordinary shares in BBL will receive further distributions in respect of their shares, and accordingly the continued listing serves no useful purpose,” said Mr Lombe. “Similarly, proofs of claim lodged by the trustee of the BBSN Trust and BBSN2 Trust accelerate BBL’s liability in relation to the subordinated notes, which makes the notes immediately due and payable.”

“There will be substantial costs to maintain the listings after 1 July, and we do not believe that incurring these costs is in the interests of BBL’s creditors,” he said. “The termination of the listing from the ASX and NZX will have no financial impact on the entitlements of BBL subordinated notes and shares under the voluntary administration.”

As a result, the joint administrators have reached an agreement to terminate the listing of:

  • BBL’s ordinary shares (BNB) and BBSN subordinated notes (BNG) from the ASX on 17 June, and
  • BBL’s BBSN2subordinated notes (BNB101) on the NZX on 24 June 2009.

All future announcements by the Voluntary Administrators will be lodged publicly on the  Deloitte Babcock & Brown Limited website. Direct mail notification will only occur when formal notices are legally required for noteholders and creditors. Any shareholder questions should be directed to bandbltd@deloitte.com.au to Dugald Laurie on (02) 9322 7103.

Mr Lombe says that investigations are continuing and will be presented in a Section 439A Report. The date of release of the final report has not been confirmed, but will be made public on or prior to 17 August 2009 (Note: media interest in receiving the reports can be lodged with the contacts below.).

Similarly, the second creditors meeting will be held on or prior to 24 August.

Key dates in the Voluntary Administration of Babcock & Brown Limited

13 March 2009   Deloitte Corporate Reorganisation Group Partners David Lombe and Simon Cathro were appointed at Voluntary Administrators of Babcock & Brown Limited
25 March 2009    First meeting of creditors
8 April 2009   Extension for convening period for the second creditors meeting from Federal Court of Australia
30 April 2009   Resignation of Directors 
10 June 2009   Babcock & Brown Limited delisting announcement from the Australian and NZ Stock Exchanges and statement regard (tax options) released
    17 June likely delisting of ASX
    24 June likely delisting of NZX
17 August 2009   Last day for providing report to creditors (Voluntary Administrators 439A Report)
24 August 2009   Last day available to the voluntary administrators to hold the second creditors' meeting

Relevant website links for further information:

For further information:
Shareholder, noteholder and creditor enquiries only: 

Dugald Laurie
Deloitte
Tel: + 61 (0) 2 9322 7103

Last Updated: 

Contacts

Name:
Karina Randall
Company:
Deloitte Australia
Job Title:
Corporate Affairs & Communications
Phone:
Tel: + 61 2 9322 3778, Mobile: +61 414 823 712
Email
karandall@deloitte.com.au
Name:
Dugald Laurie
Company:
Deloitte Australia
Job Title:
Shareholder, noteholder and creditor enquiries only
Phone:
Tel: + 61 2 9322 7103
Email
bandbltd@deloitte.com.au

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