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Contrarian
09-02-2009, 01:12 PM
Gidday

NZD 225,000,000 & AUD 265,800,00 is at risk here, B&B management are trying to do a deal whereby the debt holders don't get their money back, Management continue to get paid & the company does not go into liquidation, to benefit of the banking consortium.

Enumerate is working hard on holders behalf, Join his action group by giving him details of your holdings BNB010, NZ$ or BNBG A$

15 March B&B will default on the interest payment to BNB010,

Enumerate's email address is
ActionBBSN@gmail.com

Lawso
09-02-2009, 01:27 PM
Thanks, Contrarian. I have 10k in BNB010 and have emailed Enumerate offering support.

Contrarian
11-02-2009, 09:28 PM
Hi
Enumerate is going full steam getting our point across.
The trigger event has happened, & the unthinkable at the time of prospectus issue is now reality.

Any questions please ask...

Cowl
12-02-2009, 10:14 AM
Hi,

Just to clarify a couple of points;

The SPARC Securities (BBN010) were issued by BBI Networks (NZ) LTD (formerly Prime Networks (NZ) LTD), which is a wholly owned subsidiary of Babcock and Brown Infrastructure Pty LTD (BBI, formerly Prime Infrastructure Pty LTD).


As reported to the market on 26/1/09, SPARCS interest is due to be paid 17th February 2009.


Disc: I am employed by a subsidiary of BBI

Contrarian
12-02-2009, 02:57 PM
Hi Cowl

I am on about BNB010 NOT BBN010

I have not made reference to BBI, Only to BNB, Babcock & Brown

So , with respect you have not clarified anything.

Cowl
13-02-2009, 11:01 AM
15 March B&B will default on the interest payment to BNB010, SPARCS


I was referring to this comment where you have indicated that SPARCS interest will be defaulted on.

Contrarian
13-02-2009, 12:54 PM
Hi Cowl
I got my acronyms & facts wrong, BBN010 are SPARCS & BNB010/BBSN2 are USCR, (amongst other things)

Sorry for my error. I have edited & am 99% sure i've got the first post right,now.

Contrarian
13-02-2009, 05:25 PM
Gidday

The current thinking is that B&B want us to let the banks (The bigger mugs than I,who force fed these guys billions of dollars of easy credit) get 20% interest pa, which won't happen, But as the banks won't get their 20%pa, there definitely won't be anything left for the 2nd mortgagor (Note Holders) Our NZD 400,000,000+ gets dissolved.

Looks bad for us as we don't get anything..... However we have a poison pill we can make them eat, It's called liquidation.. The banks loose their control of their billions of dollars of debt, B&B loose valuable 25 year management contracts, we loose, but we were going to loose anyway.

These infrastructure assets return single figures so the 20% pa compounding deal is really cynical.. but I'm starting to repeat myself..

Unless we get satisfaction we pull the pin on the whole show.

Enumerate is on Hotcopper stirring up action over there, the ocker notes total value are about 3 times the BNB010

Contrarian
19-02-2009, 09:46 AM
Gidday

NBR Article..

http://www.nbr.co.nz/article/babcock-noteholders-rally-amid-confusion-over-guarantee-54014

Contrarian
20-02-2009, 09:21 AM
Gidday
So they will give us $50 per $50,000 of debt, to ensure they can rock on & the banks assets are not tainted with "in Liquidation" effect on for sale prices. No thanks, I am not inclined to muck in for your benefit.

NZ holders should disregard the bit about crystalising losses for tax, that only applies to the Australian tax system. Kiwis can either not claim the loss, or just use BNB valuation, of a loss of capital at 99.999% if they are a trader & pay taxes on share gains etc.
If there is no market or value, you could reasonably use the last offer, theirs, as valuation.

So I feel you should, Urgently lodge Exit notice & vote against the self serving face saving proposal that they have put forward.

Again one tenth of 1 cent is a joke for $1 of debt, I'd rather watch the bonfire burn.

PS. I'm not a tax expert, DYOR

Contrarian
20-02-2009, 03:15 PM
Gidday
And another thing, If you were efficient & printed out the exit notice attached to the ASX trigger announcement & faxed it you need to do it again, to the correct fax number as shown on the posted version.

Apparently a mistake was made & a lady in sydney is owed a lot of fax paper by B&B plus Kiwis wasted toll fax money. Holders also think they have issued an exit notice & they probably haven't!

B&B are aware of their error and have made no correction to ASX announcement.

To correct, make contact with the wrong fax number owner, collect the faxes & fax back receipts, publish a list of received notices SRN/CSN would be all steps to show they take their error seriously. Maybe they don't want the exit notices to arrive?

Contrarian
21-02-2009, 09:44 AM
Gidday

Latest advice from Enumerate

"We need to be able to defeat the special resolution at one of the Noteholder meetings.

We need to muster an overwhelming show of strength at the Noteholders meetings.

We need to:

- mobilise BBSN noteholders to file proxies EXPLICITLY instructing the proxy holder to vote against the special resolution"

Contrarian
24-02-2009, 07:48 PM
Gidday

Justine Turner [Justine.Turner@tvnz.co.nz] from tvnz is wanting feed back from holders..

Ps We have to all hang together, BNB should have tried to divide & conquer, but offering point one of one cent ..$50 per $50,000 is unlikely to make anyone sell out & take their pieces of silver.
Remember to reject the proposal, on the form & post it off.

Thanks

Dubdee
25-02-2009, 01:38 PM
dont think there is any doubt its a financal arrangement for NZ tax purposes. However having said that a deduction for loss under the base price adjustment rules only applies if the cause was unrelated to creditworthiness of the issuer or some arrangement whereby the issuer was not required to pay back face value.

However if the holder is a trader then everything is on revenue account and you will get the loss under BPA

Enumerate
25-02-2009, 08:16 PM
This may be of interest to those filing the various bits and pieces.

1) Exit Notice

If you have not done so, and wish to file your Exit Notice - you need to act NOW! Print the following:

http://www.asx.com.au/asxpdf/20090213/pdf/31g1c1nkgnb1fw.pdf

and fax to the real fax number +61 2 9223 2907 (Note: the fax number in the document is incorrect - some poor woman in Sydney is being plagued with thousands of BNBG/BNB010 holder faxes).

2) Noteholders Meeting Proxy

One of our ActionBBSN members had this observation:

"I notice last night when going through the proxy vote documentation that it is acceptable to send your proxy via fax, however the small print also states that the hard copy must also arrive at the address stipulated by a certain date and time".

Don't get caught out! Make sure you comply with the letter of the requests.

Make sure you make your wishes known.

ActionBBSN is requesting that you vote AGAINST the Special Resolution.

If you are a BNB010 holder, and wish to give your proxy to an ActionBBSN member attending the Auckland meeting .. you can nominate David Burton GIBSON of Auckland to carry your proxy. Be mindful that this will mean a vote AGAINST the Special Resolution.

Send ActionBBSN an eMail if you have nominated David to carry your proxy.

3) ActionBBSN Contact

Just eMail ActionBBSN@gmail.com

Contrarian
26-02-2009, 11:20 PM
Gidday
Mosteph & Dubdee

You guys sound like you are tax experts (my sympathies :-0 )
Anyway my entity is a registered trader, shopkeeper, & my soiled goods, rotten fruit is written off against income from share trading. Joe who isn't a registered trader & tries to claim losses in a bad year having not paid taxes on gains previously, has more of a problem claiming the losses. However BNB have the Aussie mindset where everyone claims losses & must pay on gains, this doesn't apply in NZ you are either like me..straight up & pay Tax on gains, claim losses etc OR you don't declare gains & can't therefore claim losses.
So answer the question.... Does Joe who invested nz$10,000 in BNB010 need to crystalise his loss by accepting $10 as full & final. I say NO he doesn't.. The absence of a market or a better offer values his holding at, worst case scenario at $10. If he is like most Kiwis he probably has no deductabilty at all & it's all written off as as hard luck..not deductable. So nothing to gain from being a BNB, yes master, lackey who rolls over to give the banks & the BNB management freedom to run a little "Company".
They have no shareholders anymore, yet they are acting like a ASX company with shareholders....Go figure

Please don't let us get distracted from the need to A: file exit notices & B Reject the restructure..

Ps Top of the chat site again,,What a shame ;-)

Dubdee
02-03-2009, 12:49 PM
Mosteph just have a look at the notes to the Inland Revenues IR3K:

" If you sell a financial arrangement for a consideration influenced by:

the decline of the other persons credit worthiness;

an increase in the possibility that the other person may default;

an event that occured which reduced or cancelled the other person obligations under the financial arrangement.

treat the financial arrangement as having received all the amounts that would be payable if the consideration was not influenced by these factors."

this is why Mrs Sandshoes wont be getting a cracker of relief from IRD on the finance company debacles.

And yes I am voting "no" and No I wont get to get a deduction as hold these notes on capital account.

Contrarian
07-03-2009, 07:04 PM
Gidday

People don't get despondent, about your $10,000 on deposit with a low risk infrastructure company suddenly "apparently" only being now worth $10.

What we have to do is vote against the proposal, make sure you mail the original correctly completed "Reject" notice to Link Market Services. We as note holders, don't just want to pass the resolution, we want to emphatically send a message, We then have a chance of having the dirty laundry aired. Agreeing to a 20% interest rate for the banks & shafting us, is not fair, Why not just let the banks have everything?

BNB must be liquidated. Every vote counts.. Come to Friday the 13th meeting.

Thanks

Dubdee
11-03-2009, 12:46 PM
Subordination deed available for inpsection at Bell Gully Vero Centre. Can anyone collect a copy, scan it and hang it so all can read?

moimoi
11-03-2009, 09:05 PM
suspect you won't be able to take a copy away for your perusal....

no one would want you to be fully informed as to the details hence enabling an informed decsion would they.???

more info here..

http://www.nbr.co.nz/article/babcock-open-loan-docs-77149

Enumerate
12-03-2009, 07:55 PM
TV1's Justine Turner advises that her story will be on air at 6am, tomorrow (NZI Breakfast). She managed to arranged an interview with Michael Larkin. Should be interesting.

Garth Bray will be covering the meeting. Should be some coverage on the main NZ news at 6pm.

Australian residents can gain access to the coverage from the website:

http://tvnz.co.nz/business-news

QOH
12-03-2009, 10:46 PM
Good luck to you guys tomorrow. Great to see people fighting back.

Lawso
13-03-2009, 12:49 PM
Resolution heavily defeated. Congratulations, Enumerate. We got the result we wanted. thanks largely to your great efforts. Whether there will be any other more tangible reward still looks unlikely but let's keep on trying. Once again, well done.

Enumerate
13-03-2009, 02:04 PM
BNB is now in Voluntary Administration. Deloitte has been appointed as Administrator.

We have what we wished for: our noteholder rights, under the trust deed, have not been modified, diluted or erased.

We have the power, through the Administrator, to enact a set of resolutions at the creditors meeting to completely control BNB, BBIPL and all the subsidiaries of BBIPL. We have the power to completely overturn the restructuring path agreed by the ex-BNB board and the banking consortium.

We have, as confirmed in a question at the meeting to the board, the right to instruct the Administrator to force BBIPL into administration. As we speak, even more cunning plans are being arranged to for the entire group into administration. (The large holders who contacted the board earlier this week now have all the details of the trust deeds to plan the best way to detonate a nuclear device under the BNB group).

We will proceed to enact a complete insolvency process over as much of BNB's assets as possible.

The bankers know we can do this - they have tasted our resolve at the Noteholders meeting. There is even a fund of $1.5million cash, in BNB, from which the Administrator can draw to fund investigative action as directed by creditors resolution at the creditors meeting.

We now have the momentum to drive the insolvency process forward. It is now the bankers who are the passengers - unless they decide to approach us with a reasonable alternative.

Events over the next 8 days will be critical.

srotherh
13-03-2009, 08:19 PM
BNB is now in Voluntary Administration. Deloitte has been appointed as Administrator.

We have what we wished for: our noteholder rights, under the trust deed, have not been modified, diluted or erased.

We have the power, through the Administrator, to enact a set of resolutions at the creditors meeting to completely control BNB, BBIPL and all the subsidiaries of BBIPL. We have the power to completely overturn the restructuring path agreed by the ex-BNB board and the banking consortium.

We have, as confirmed in a question at the meeting to the board, the right to instruct the Administrator to force BBIPL into administration. As we speak, even more cunning plans are being arranged to for the entire group into administration. (The large holders who contacted the board earlier this week now have all the details of the trust deeds to plan the best way to detonate a nuclear device under the BNB group).

We will proceed to enact a complete insolvency process over as much of BNB's assets as possible.

The bankers know we can do this - they have tasted our resolve at the Noteholders meeting. There is even a fund of $1.5million cash, in BNB, from which the Administrator can draw to fund investigative action as directed by creditors resolution at the creditors meeting.

We now have the momentum to drive the insolvency process forward. It is now the bankers who are the passengers - unless they decide to approach us with a reasonable alternative.

Events over the next 8 days will be critical.




To Enumerate,Lawso and everyone that stood up and were counted
CONGRATULATIONS
Show them we are not all sheep waiting to be fleeced

STRAT
13-03-2009, 08:56 PM
BNB is now in Voluntary Administration. Deloitte has been appointed as Administrator.

We have what we wished for: our noteholder rights, under the trust deed, have not been modified, diluted or erased.

We have the power, through the Administrator, to enact a set of resolutions at the creditors meeting to completely control BNB, BBIPL and all the subsidiaries of BBIPL. We have the power to completely overturn the restructuring path agreed by the ex-BNB board and the banking consortium.

We have, as confirmed in a question at the meeting to the board, the right to instruct the Administrator to force BBIPL into administration. As we speak, even more cunning plans are being arranged to for the entire group into administration. (The large holders who contacted the board earlier this week now have all the details of the trust deeds to plan the best way to detonate a nuclear device under the BNB group).

We will proceed to enact a complete insolvency process over as much of BNB's assets as possible.

The bankers know we can do this - they have tasted our resolve at the Noteholders meeting. There is even a fund of $1.5million cash, in BNB, from which the Administrator can draw to fund investigative action as directed by creditors resolution at the creditors meeting.

We now have the momentum to drive the insolvency process forward. It is now the bankers who are the passengers - unless they decide to approach us with a reasonable alternative.

Events over the next 8 days will be critical.Wow,
well done you guys. I sincerely hope yall get something tangible out of this too

QOH
13-03-2009, 11:41 PM
Yes a great effort you guys.

Balance
14-03-2009, 09:05 AM
Well done, guys.

Valuable lesson to be learnt here. Buying deeply subordinated debt in an Aussie investment company with no transparency - just as bad if not more than finance companies. Shudder!

Unicorn
14-03-2009, 10:10 AM
Great result, well done. I hope you manage to extract a much more reasonable offer from the self serving bankers and executives..

Contrarian
16-03-2009, 10:26 AM
Gidday

Administrator on CNBC Sky 95 in next few mins

Enumerate
17-03-2009, 09:59 PM
If you own BNBG's or BNB010's - you should join ActionBBSN:

ActionBBSN@gmail.com

Contrarian
18-03-2009, 09:18 PM
Gidday

Enumerate & Crew make front page of Financial Times! 14 March.

I saw the administrator fulla on CNBC the other day, I lost count of how many times he said he was working for Noteholders.

Current advice is to file your exit notice, & Join Action BBSN.

Remember folks ONE Dollar + interest is the goal. Don't start thinking about cents in the dollar, It's negative & bad for your wealth.

Enumerate
24-03-2009, 09:42 AM
Excellent article in The Australian outlining the leverage that the BNBG/BNB010 noteholders have:

http://www.theaustralian.news.com.au/business/story/0,28124,25231795-16941,00.html

Enumerate
20-04-2009, 09:35 AM
The BusinessSpectator has the following:

http://www.businessspectator.com.au/bs.nsf/Article/Banks-may-buy-out-Babcock-noteholders-report-pd20090420-R9TKK?OpenDocument

Banks may buy out Babcock noteholders: report

A group of Babcock & Brown Ltd's lenders is reportedly mulling a bid to buy out the company's 8,000 subordinated noteholders, who are owed around $600 million, ahead of a meeting to determine how much the investors could recoup from the company's collapse.

Analysts told The Australian that the syndicate of 25 banks would need to put forward much more than the $600,000 offered by management in March - and fiercely rejected - if the lenders want to avoid potentially costly investigations into the investment firm, including liquidation or debt claims if the company is solvent.

In March, Babcock appointed voluntary administrators Simon John Cathro and David Lombe of Deloitte, following a decision by New Zealand creditors to vote against a restructuring plan.

The administrators, which are investigating the affairs and collapse of Babcock, have previously said the firm was left with limited assets and cash.

i_claudius
19-08-2009, 10:43 AM
Administrator proposes I contribute another $400 to fund further investigations that may lead to partial recovery on this dog.
Good money after bad? Or should I ?

Contrarian
19-08-2009, 06:29 PM
Gidday

I'm sending off my $400 in the next few days

COLIN
20-08-2009, 07:30 PM
Gidday

I'm sending off my $400 in the next few days

May I ask why?
(A friend of mine has asked for advice on this - I certainly don't want to tell her to throw good money after bad!)

macduffy
22-08-2009, 05:07 PM
May I ask why?
(A friend of mine has asked for advice on this - I certainly don't want to tell her to throw good money after bad!)

As I understand the situation, in the event of the administrators' further investigations, made possible by funding from creditors, leading to a recovery of assets, the adminstrators may apply to the Court for an order that entitles those who contribute to this funding to receive a preferential return over and above those who elect not to participate.

I don't offer any opinion on whether or not it is advisable to contribute.

Contrarian
23-08-2009, 06:21 AM
Gidday

A similar case..

http://www.businessday.com.au/business/bell-tolls-for-the-bad-boys-20081028-5a3f.html
BNB is going to step up from administrator to liquidator who has greater powers.

There is valuable directors insurance in place which we may be able to claim against.

Nitaa
23-08-2009, 11:05 AM
May I ask why?
(A friend of mine has asked for advice on this - I certainly don't want to tell her to throw good money after bad!)Sounds like a good consultant

First. Analyse the current situation
Second. Advise company and or shareholders that the situation is far worse than first thought.
Third. Request more capital to recover more money or make it more viable.

And so on.

Steve
23-08-2009, 05:00 PM
Sounds like a good consultant

First. Analyse the current situation
Second. Advise company and or shareholders that the situation is far worse than first thought.
Third. Request more capital to recover more money or make it more viable.

And so on.

A bit like a gravy train... :rolleyes:

macduffy
23-08-2009, 05:12 PM
A bit like a gravy train... :rolleyes:

I wouldn't be too quick to write this off as just a consultant's benefit.

We know that:

- There are some governance issues worth investigating.

- B&B held appropriate insurance.

- Experience shows that there is a reasonable chance of settlement in such cases if a strong case is made.

I'm looking forward to Enumerate's view on the situation.

Enumerate
25-08-2009, 12:19 PM
I'm looking forward to Enumerate's view on the situation.

It was correctly pointed out that in Australian Insolvency law you can have differing payouts for creditors who have contributed to an investigation and litigation.

The situation with BBL is:

- If we do not pursue litigation, there is only about 1 cent per 1 dollar able to be paid out
- If we pursue litigation, it is probable that we have about $50million recoverable with director breaches (indemnity insurance). Further, there is about $9million in US employee trusts, of which BBL is a beneficiary and there are no employees. All up ... lets say 10 cents per $1 face is recoverable just looking at the breaches currently identified.

With the Liquidator appointed and the associated increased powers of investigation we have one further possibility:

- We can demand the terms of the "reconstruction" contracts agreed with the Banking Consortium. We can demand that directors account for their actions in terms of negotiating this contract. If we can prove that the bankers acted unfairly or unreasonably (the 20% restructuring fee springs to mind) ... then it is off to an insolvency court ... the real fun and games begin.

It is clearly too early to "count our chickens" before the detail emerges supporting the case for this last point. However, this will be the first time that the bankers will have faced a "call to account" for their actions. Personally, I am optimistic that significant value in the notes will be restored, reflected by damages claims against the banks.

The Directors are small fry compared with the banks.

I realise there are large numbers of holders thinking "will AUD$400 be money well spent". I would suggest the following rule of thumb. If, at 10 cents per $1 face, you will recover more than AUD$400 - then consider "investing" the current likely return from litigation into a potential serious return from expanding the litigation to include the bankers. If your 10% recovery is less, then consider spending AUD$400 only if you have a "burning sense of justice".

Enumerate
25-08-2009, 12:41 PM
One further point.

If the Liquidator fails to gain funding from the current creditors, the litigation is likely to proceed funded by a litigation funder (like IMF, for example - no, not the International Monetary Fund, no, not even the Impossible Missions Force ... http://www.imf.com.au/). Apparently there are a number of such entities lining up to get a piece of the BBL litigation.

The downside for current creditors is that these funds will negotiate a deal based on the partial information collected by the Administrators.

The Liquidator has greater powers. Additionally, if creditors fund the further investigation and can widen and deepen the litigation (based on, say, finding evidence against the banks) then the deal with the litigation funder will get alot "sweeter" for the creditors.

The Liquidator could have appointed a litigation funder, immediately. However, he was asked by the Creditors Committee to consider putting a proposal to the creditors to fund the next stage of investigation with the intention of increasing the overall return to creditors.

Nitaa
25-08-2009, 01:12 PM
Enumerate. I think you have done a wonderful job so far. Keep up the good work.

One area that i wondered can be considered although probably be a bit late now. If lawyers etc are confifent about the possibility of recovering money then a good incentive would be on a commision only basis. Sure they would want more piece of the pie but it would be a strong indication on how confident on how they feel its worth pursuing

Enumerate
25-08-2009, 02:49 PM
One area that i wondered can be considered although probably be a bit late now. If lawyers etc are confifent about the possibility of recovering money then a good incentive would be on a commision only basis. Sure they would want more piece of the pie but it would be a strong indication on how confident on how they feel its worth pursuing

This issue is not too late ... it is, in fact, quite topical.

My understanding is the IMF type deal is done on "fee for recovery" basis. Typically, set as a total percentage of the total recovery. Hence there can be no upfront money payable by the creditors.

The reasons for having the creditors fund the further investigation is to build a solid body of evidence that supports a wider set of recoveries. Both factors, apparently, will result in more "generous" terms from the litigation funder.

I would also expect that there is a further factor. If a compelling case can be put forward, to the banks, then there is a possibility of a settlement without the need for litigation. Clearly there is significant effort required before we can even dream of this phase ...

mrmoosy
27-08-2009, 11:46 AM
Thanks for all your sage comments and concise summaries of this fiasco, Enumerate. I for one have paid the $400 into the pot to stay in this high stakes Poker game

biker
27-08-2009, 12:00 PM
Has correspondence been sent out re the 4 hundy? How do I pay? Thks

Contrarian
27-08-2009, 12:19 PM
Hi

Try Deloitte.co.au & find Babcock & Brown, apparently scroll down is not in alphabetical order.

I paid over ASB internet, I didn't have a swift code but matched up the BSB #.

This is the guy to deal with.

Stewart Graham(AU - Sydney) stewagraham@deloitte.com.au

COLIN
27-08-2009, 03:05 PM
Enumerate: My grateful thanks, also, for your sage advice which I have passed on to my friend, with the recommendation that she forks out the $400.

biker
28-08-2009, 10:47 AM
Hi

Try Deloitte.co.au & find Babcock & Brown, apparently scroll down is not in alphabetical order.

I paid over ASB internet, I didn't have a swift code but matched up the BSB #.

This is the guy to deal with.

Stewart Graham(AU - Sydney) stewagraham@deloitte.com.au


Thanks contrarian, sending off my cheque, and should have done my homework and found the info in the creditors report.

Thanks Enumerate for your on going work and communication.

Enumerate
21-09-2009, 07:30 PM
Deloitte press release, today, announced that the $300k goal for the fighting fund has been reached.

Adele Ferguson has published an excellent article covering the Deloitte announcement of the fighting fund reaching it's goal:

http://www.theaustralian.news.com.au/business/story/0,28124,26100768-5012439,00.html

The article is very comprehensive, as usual, and is well worth a close read.

The Deloitte press release is also worthy of careful review:

Published: Monday, 21 September 20092009-09-21 00:00:00.0

21 September 2009: 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:

* Potential conflicts of interest between the Boards of BBL and BBIPL
* The possibility of inadequate disclosure regarding public offer documents
* A review of the risk management processes and policies in relation to the business model
* A review of the overall solvency of the group at various points and associated issues, and
* An investigation of the timings of impairments of assets.

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.

i_claudius
30-11-2009, 07:24 PM
Has anything happened here?
Sent my $400 in a couple of months or so ago.

Many thanks Enumerate.Appreciate your counsel.

mrmoosy
01-12-2009, 09:27 AM
Article in Aussie paper the other day that because of the large amount of documents etc to be colated and examined it will be early next year before the action begins.

Contrarian
13-02-2012, 07:22 AM
Babcock creditors' gamble pays off tenfold

http://www.smh.com.au/business/babcock-creditors-gamble-pays-off-tenfold-20120212-1szsf.html

Romulus
13-02-2012, 08:45 AM
Yes I also read the article. Guess as B&B bondholder does this bode well for us in recovering some of value or are we still too far down the food chain. From memory, correct me if I'm wrong as a individual bondholder I didn't need to take any action, as the trustee was doing that on all bondholders behalf.

macduffy
13-02-2012, 10:55 AM
As I read it, those bondholders who stumped up $400 to fund the litigation are to get first call on the proceeds and will be paid out 10 times their contribution, ie $4,000 plus their $400 contribution - provided they're not owed more than $4,400, which I would think would be just about all such bondholders. Whether there is anything left after that for a general distribution is unclear but I would suspect that the $4,000 plus $400 is a fairly conservative amount, leaving something, however modest, to be distributed generally to bondholders. Just my guess, of course.

See also comment in the NZDX section.