Tricom recapitalisation
Babcock and Brown has joined with a number of private investors and ANZ to recapitalise stock broking firm Tricom.
Babcock and Brown announced to the Australian Securities Exchange today that it had participated with ANZ, Tricom management and certain private investors introduced by Tricom management in the recapitalisation.
It said it had increased its existing exposure of $35 million to a maximum of $40 million by underwriting a further $5 million of additional funds.
Babcock and Brown said that maximum exposure had already been reduced to $37.5 million and that its total exposure remained secured, with no further capital injection contemplated following the recapitalisation.
The announcement said the recapitalisation took the form of new equity from parties other than Babcock and Brown and a stand still agreement from Tricom’s secured lenders — ANZ and Babcock and Brown.
The company said it was participating in the recapitalisation to protect Babcock and Brown’s exposure and to ensure an orderly rundown of the balance of Tricom’s securities loan book.
AUTHOR
Mike Taylor
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
