Babcock Wins A$200 Million Reprieve From Banks, Review Reports

By Gemma Daley

Nov. 29 (Bloomberg) -- Babcock & Brown Ltd. is expected to win the support from its banks for up to A$200 million ($132 million) in new cash funding, the Australian Financial Review reported.

The short-term reprieve ensures the asset manager’s survival until the end of the year, the paper reported, without saying where it got the information.

Babcock, struggling under massive debt as the global credit crunch has pushed up interest costs and prompted large write downs, has secured the new funding agreement because it is close to selling some assets, the paper said.

To contact the reporter on this story: Gemma Daley in Canberra at gdaley@bloomberg.net