BBL creditors and noteholders want action
Solid support to fund Liquidator investigations, Liquidator extend deadlineDOWNLOAD
The creditors and noteholders of Babcock & Brown Limited (BBL) have provided solid support to fund further investigations by Deloitte partners and Babcock & Brown Liquidators, David Lombe and Simon Cathro.
A significant number of creditors have paid funds surpassing $300,000 to the Liquidators following their call in August to creditors and noteholders for the establishment of a fighting fund to investigate and pursue recovery actions for the benefit of creditors.
Mr Lombe indicated that the funds raised will enable preliminary public examinations of Directors, senior management and other relevant persons to be undertaken in the near term.
“Clearly, creditors want action,” he said. “In fact, some creditors have indicated they are prepared to contribute funds above the $400.
“In my 20 years of experience as a Liquidator, I have not experienced this level of support by creditors; particularly as they are contributing money out of their own pockets after having already suffered significant financial losses,” said Mr Lombe.
“Creditors want to see Directors in the witness box. They want an explanation for how Australia’s second largest investment firm incurred in excess of $5 billion in losses for the 12 months ended 31 December 2008.”
In August, the Liquidators outlined a range of matters they wish to investigate further, including:
The Liquidators will be extending the deadline to allow additional contributions to be made.
“Additional contributions will enable us to undertake substantial further investigations and conduct a more extensive examination of relevant persons,” he said.
Mr Lombe and Mr Cathro have indicated that public examinations may commence as early as November 2009.
Key dates in the Liquidation of Babcock & Brown Limited
|13 March 2009||Deloitte Corporate Reorganisation Group Partners David Lombe and Simon Cathro appointed as 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|
|29 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|
|13 August 2009||Report to creditors (Voluntary Administrators 439A Report)|
|24 August 2009||Second creditors meeting and resolution that BBL be wound up|
|15 September 2009||Initial closing date for noteholder contributions to funding|
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