Babcock & Brown Infrastructure, the financially troubled parent of pan-European bulk/break bulk stevedore Euroports, rejected a refinancing proposal from a group of international hedge funds.
The proposal, which is being managed by Royal Bank of Scotland, is not superior to an equity recapitalization plan involving a potential cornerstone investor, the Australian transport and energy infrastructure fund said Sept. 30.
The proposal by the hedge funds "does not fundamentally address the debt position of BBI" which would create "considerable execution risks," the Sydney-based company said.
BBI, which also owns the UK's PD Ports, halted trading in its shares today for the third time this month as it progresses the recapitalization plan from the potential cornerstone investor.
The investor, said to be Brookfield Asset Management of Canada, is reportedly offering to inject around $525 million into BBI and to buy 50 percent of its Dalrymple Bay coal shipping terminal in Australia.
BBI sold 40 percent of Luxembourg-based Euroports at a $170 million loss earlier in the year and is seeking a buyer for PD Ports, one of the UK's biggest bulk cargo handlers, with an estimated price tag of around $480 million.
Contact Bruce Barnard at email@example.com.