Friday 13th March 2009 |
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The investment group appointed Deloitte Touche Tohmatsu as voluntary administrators, according to a statement today. Holders of the company's New Zealand subordinated notes voted 58% to 42% against restructuring the debt, pushing Babcock & Brown down the path to insolvency.
The noteholders rejected a proposal that involved selling assets and potentially offering a debt-for-equity swap, offering them as little as 1 cent in the dollar on their NZ$225 million of investment. As a result, a vote by Australian noteholders was cancelled.
The group's trading subsidiary, Babcock & Brown International, owes some NZ$3.3 billion in bank debt.
In a statement to the ASX, Babcock & Brown said its board and managers "deeply regret the loss of subordinated note and shareholder value that has occurred and acknowledge the financial hardship this has caused."
The shares were suspended from trading on the ASX in January, having shed 99% of their value. On Jan. 23, the company concluded its shares were worthless.
Businesswire.co.nz
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