B & B DETERIORATE ALONG WITH OUTDATED BROWN COAL DUST –  COMPANY GRASPS AT EXTENDED SUSPENSION AS SHARES PLUMMET to $0.011

The Leigh Creek Coal Mine run by (BBP) Babcock & Brown Power – (Generation Business) may be in deeper trouble.  Babcock and Brown acquired Flinders Power in June 2006, transporting brown coal from Leigh Creek in the Flinders Ranges to the Northern and Playford power stations at Port Augusta where it is used to generate 40 per cent of South Australia’s electricity.  Today BBP shares hit the bottom of the coal pits at $0.011.  In a desperate strategy Babcock & Brown seek an extended suspension.

On June 13 this year, death appeared imminent when Babcock & Brown shares collapsed amidst global humiliation and mismanagement.  B &B Power fell 26% to 66c, with 74% losses on their 2006 float price.  It was predicted then that Babcock & Brown would not be able to raise capital in the months ahead and Fund Directors would be exiting poste haste along with the shareholders.  Today Babcock shares hit a demeaning low, dropping  -14.1% to  -$0.011. 

B & B are about as unpopular as it’s association with the respiratory degenerative, brown coal dust, said to be associated with the mining of coal and prevelant in residents of communities within wheezing distance of the Leigh Creek Coal mine.

On November 26 this year, Babcock and Brown Wind Partners sought to sever ties with the troubled mother company. BBWP told the Companies annual general meeting that it planned to hold discussions with a view to taking over management of it’s operations.

Babcock & Brown – Request for Extension of Voluntary Suspension Pursuant to Listing Rule 17.2, Babcock & Brown Limited (“the Company”) requests an extension of the voluntary suspension in respect of its shares (ASX: BNB) and subordinated notes (ASX: BNBG), from commencement of trading this morning, Monday 1 December 2008.

The reason for the request to extend the voluntary suspension of trading is that Babcock & Brown is continuing discussions with its banking syndicate in relation to the provision of a short term funding facility to replace the disputed deposit which has been withheld by one of its banks and the restructure of its corporate banking arrangements.

It is expected that the suspension will end when BNB is in a position to make a further announcement in relation to those discussions and negotiations, which is expected to be by Wednesday 3 December 2008.

The Company is not aware of any reason why the suspension should not be granted.  Ends.

Amidst resignations of directors and management, headlines littering B & B website include the following deterioration of announcements:

01.12.08 Request for Extension of Voluntary Suspension
24.11.08 Suspension Request 
24.11.08 Resignation of Directors 
20.11.08 Trading Halt Request 
19.11.08 Update on Strategic Review and Proposed Changes to Bank Facilities 
19.11.08 Standard & Poor’s RatingDownload 
17.11.08 Sale of Portugese Wind Assets 
17.11.08Potential Loss in GPT JV 
17.11.08 BBSN Interest Payment
12.11.08 Response to Price Query
11.11.08 Confirms Payment Of Subordinated Note Interest On November 17
10.11.08Termination Of Babcock & Brown Capital Management Rights And Commencement Of Review
10.11.08 B&B International Rating Lowered to BB
03.11.08 Resignation Of Director
23.10.08 Discussions With Potential Strategic Partners
20.10.08 Change Of Approach To Governance & Fee Arrangements For Listed Funds
17.09.08 B&B International Rating Lowered To ‘BB’ On Financial Market Disruption; Outlook Negative
28.08.08 Agrees To Sell Rights To Manage Babcock & Brown Communities Group And Supports Price Discovery Process
28.08.08 Strategic Review Of Babcock & Brown Capital
21.08.08 Board And Management Changes
13.06.08 B&B International Ratings Lowered To ‘BB+B’, Stay On Watch Negative, After Parent’s Share Price Falls Further
12.06.08 Response To ASX Query
12.06.08 B&B International Rating On Watch Negative Following Share Price Fall
18.04.08 Completion Of £84 Million Capital Raising By BBPP
10.04.08 Appointment And Resignation Of Company Secretary
07.03.08 Response To Market Rumours Regarding Shareholdings In Our Managed Funds
03.03.08 Settlement of Outstanding US Promoter Penalty Investigation