| |
| |
![]() |
| |
|
| |
|
| |
|
SYDNEY: The chief executive and chairman of troubled Australian investment manager Babcock & Brown will step aside as part of a major overhaul of operations, the company said Thursday.
CEO Phil Green will be replaced immediately by chief financial officer Michael Larkin and Chairman James Babcock's role will be taken by his deputy, Elizabeth Nosworthy.
The announcement coincided with the release of first-half results showing group net profit fell 30 per cent to A$175 million (US$152 million) in the six months ended June 30 due to writedowns on investments.
Babcock & Brown shares have dropped nearly 90 per cent this year on concerns over its debt-laden corporate structure amid the global credit crunch, and the management overhaul follows a last minute profit warning last week.
The firm also announced plans to restructure the business amid fears about the sustainability of its highly debt-dependent listed infrastructure funds.
On Monday one of its managed funds, Babcock & Brown Power, announced A$452 million in writedowns and losses and said it was on "rocky financial ground."
Babcock & Brown said it will not pay a dividend until sufficient progress has been made on corporate debt reduction, with dividends expected to recommence in 2009.
- AFP/yb
|
