Babcock & Brown Power stock tumbles on impairment charges

The stock fell to 29.5 Australian cents after the statement. The company's market value has shrunk to a sixth of its worth three months ago.

The company has agreed to sell the Tamar Valley Power Station to the state government of Tasmania for A$100 million in cash after spending A$223 million on construction. The transaction nets out at a A$42 million loss. The company will also take a A$410 million impairment charge against the assets of Alinta.

The utility also announced it has hired UBS AG to conduct a strategic review of the company, it said. Babcock & Brown Power gained approval from lenders to extend a A$120 million loan until March 31 next year, when the company would have be able to repay the debt from cash reserves and the proceeds of asset sales.

The company reiterated its forecast for 2008 EBITDA of A$330 million to A$340 million.

By Jonathan Underhill

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Geneva Finance Limited (NZX: GFL) Half Year Results
The New Zealand Refining Company Limited (NZX: NZR) NZ announces equity raising
Asset Plus Limited (NZX: APL) Result for the six months ended 30 September 2021
Me Today Limited (NZX: MEE) 30 September 21 Results and Conditional Placement
Oceania Healthcare Limited (NZX: OCA) Delivers Improved Performance Despite COVID-19
29th November 2021 Morning Report
Radius Residential Care Limited (NZX: RAD) Announces Half Year Results of FY22
NZ Automotive Investments Limited (NZX: NZA) Interim Results for Half Year 2022
Greenfern Industries Limited (NZX: GFI) Releases Interim Results
Hallenstein Glasson Holdings Limited (NZX: HLG) Announcement of Final Dividend