- 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.
Latest from InvestorWeekly
- First State Super adds MSCI platform
- Henderson launches fixed interest fund
- Asset managers facing operational pressures
- Perpetual expands trustee services in Singapore
- Christian super funds merge
- Funds management mergers tipped to continue
- AMG acquires River Road Asset Management
- Aus Unity fund acquires option for green office building
- NAB in talks with global custody providers
- Perpetual offloads Trust Company super arm
- Weighing up default fund insurance
- Don’t neglect developed markets
- Hunting for ‘preferred infrastructure’
- Westfield: a failure of engagement
- Can Europe avoid Japan’s fate?
- Cleaning up with clean technology
- Obsession with fees hurting retirees
- Do we need independent directors?
- Australian corporate debt: The phoenix rises
- A weather forecast for 2014
- Mercer appoints two non-executive directors
- Nikko AM appoints senior executive
- Equity Trustees appoints non-executive director
- Bennelong hires senior analyst
- Lazard AM appoints portfolio manager
- Certitude appoints new regional manager
- SunGard appoints director of insurance solutions
- Bravura Solutions expands executive team
- JANA appoints property research consultant
- State Street expands senior leadership team