- Monday, 17 August 2009 | Vishal Teckchandani
"As a consequence of a deed of company arrangement not being proposed, liquidation is the only option available," Deloitte partner corporate reorganisation David Lombe said on Friday.
"Liquidation will allow us to investigate the matter in greater depth, conduct public examinations and as a liquidator receive increased powers to commence recovery actions."
In a report released to creditors and noteholders, the administrators also outlined matters they wish to investigate further.
These include potential conflicts of interest between the boards of Babcock & Brown and Babcock & Brown International, the possibility of inadequate disclosure regarding public offer documents and a review of risk management processes and policies in relation to the business model.
The administrators also want a review of the overall solvency of the group at various points and an investigation of the timings of impairment of assets.
Creditors will be asked to vote for liquidation during the second creditors meeting on 24 August 2009.
Babcock & Brown went into voluntary administration on 13 March after creditors rejected a plan aimed at restructuring the company's debt.
- State Street nabs Telstra Super exec
- Big Sky names head of operations
- UBS expands Australian wholesale team
- Vanguard appoints senior economist for Asia Pacific
- ANZ appoints head of rates research
- Mercer names investment operations boss
- ANZ appoints global commercial banking MD
- Life insurance working group names chairman
- BT expands life insurance team
- Former Bennelong CEO joins Wingate Group