The announcement to the Australian Securities Exchange said that the two parties “continue to negotiate in good faith the development of a proposed transaction”.<\/p>\n
The statement continued: “This agreement includes a non-solicitation obligation on BBI, a capped cost reimbursement provision in favour of the potential cornerstone investor and a three month right of first refusal over the sale of certain assets, if BBI chooses to sell those assets.”<\/p>\n
The downturn in the world economy has hit BBI very hard. It recently reported a net loss of A$977m (US849m) for the year ended June 30 following a A$44m loss a year earlier, and has seen its stock price decline into the “penny dreadful” category of less than 10 cents.<\/p>\n
However it still retains several key infrastructural investments, among them the wholly-owned Dalrymple Bay Coal Terminal in Queensland.<\/p>\n
In order to reduce debt it has been trying to sell several assets and has said it has received several expressions of interest for the coal terminal.<\/p>\n
The emergence of a possible “white knight” cornerstone investor could be the positive development BBI requires to stablise itself, without having to jettison too many of its core investments.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
Troubled Australian ports investor Babcock & Brown Infrastructure (BBI) has revealed it has entered into an interim agreement with a potential cornerstone investor about a recapitalisation plan.<\/p>\n","protected":false},"author":8,"featured_media":7180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[55],"tags":[],"sponsor":[],"class_list":["post-7179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oceania"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts\/7179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/comments?post=7179"}],"version-history":[{"count":1,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts\/7179\/revisions"}],"predecessor-version":[{"id":7181,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts\/7179\/revisions\/7181"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/media\/7180"}],"wp:attachment":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/media?parent=7179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/categories?post=7179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/tags?post=7179"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/sponsor?post=7179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}