Voluntary Administrators appointed to Babcock & Brown Limited
Deloitte Corporate Reorganisation Group Partners David Lombe and Simon Cathro were today appointed Voluntary Administrators of Babcock & Brown Limited.
The appointment follows the voting against the restructure of Babcock & Brown Limited’s subordinated notes by New Zealand noteholders today (13 March), which in turn, has led the Directors of the company to determine that the company is likely to become insolvent.
The role of the Voluntary Administrators will be to investigate the company’s affairs. They will be shortly writing to noteholders and creditors, to provide notice of the company’s first meeting of creditors, which will be held on 25 March 2009. These meetings will be in Australia and New Zealand.
During the first meeting, the voluntary administrators will ask for creditors to nominate a committee to assist with the administration.
“Our aim will be to seek advice from noteholders and creditors about any matters that need to be investigated and reviewed,” said Mr Lombe.
“As Voluntary Administrators, our responsibilities are to creditors and noteholders. As such we will undertake to investigate the company and all its affairs thoroughly, and will provide our findings to creditors in our Section 439A Report,” said Mr Lombe.
“Due to the complexity of the matter, it is likely that the Voluntary Administrators will seek an extension of the standard 20 business day convening period for the second creditors meeting, which will require court approval.
“The Voluntary Administrators will also ensure that appropriate notices will be provided to the ASX.
“We will also ensure that any ASX compliance requirements are dealt with and maintained during the course of the Administration,” he said.
There are approximately 4,500 noteholders in NZ and approximately 3,500 noteholders in Australia.
NB: For further general information on the voluntary administration process, please refer to: www.asic.gov.au/insolvencyinfosheets
NB: www.babcockbrown.com for a copy of the Babcock & Brown ASX announcement with regard to the appointment of Voluntary Administrators, as well as all other documentation associated with 13 March 2009 noteholder meetings including the “Notice of meeting of noteholders, explanatory memorandum and offer document”
NB: See Deloitte’s B&B media releases and communications at www.deloitte.com.au on the link under “Hot Topics.”
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