Australian infrastructure and asset investment bank Babcock and Brown, which owes a syndicate of 25 banks and others A$3.1 billion, failed over the weekend to get its banks to agree to a A$200 million loan extension to help it satisfy one of its banks, Hypovereinsbank. The German bank has frozen a A$140 million deposit to ensure it is repaid most of its loan. The AFR reported that talks failed over the weekend to allow Babcock and Brown to trade through to the end of the year. The Australian reported that two European banks were not willing to commit to the A$200 million extension. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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