BBI 0.00% $3.98 babcock & brown infrastructure group

fat cats

  1. 22,049 Posts.
    lightbulb Created with Sketch. 166
    Fees to BNB...................Yes ................lots

    Bonuses to manangement,.................Yes............Lots


    Divs to shareholders.............NO...........None


    OBAMA.............you have a job ahead


    BBI shareholders furious over big bonuses and fees

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    * Scott Rochfort
    * November 6, 2008
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    THE board of Babcock & Brown Infrastructure has been given a roasting by security-holders, furious over the debt-laden fund's dismal security price performance, the big fees paid to its parent and the bonuses paid to its senior management team.

    Tempers of BBI's security-holders were further inflamed before yesterday's annual meeting after the cash-strapped company announced that it would suspend distribution payments "until further notice".

    "I'm not sure of management's ability to see a train coming at full steam," said one security-holder, reflecting the sentiment of many at the meeting.

    "I think you guys have a lot to answer for," said another shareholder, angry at the company's decision to cut its already reduced distributions.

    BBI's recently appointed independent chairman, David Hamill, argued it was in the best interests for security-holders that distributions be suspended so the debt-laden company could repair its battered balance sheet.

    "We consider that securityholders' interests are better served by preserving operating cash flows within the business to reduce debt rather than being paid as stapled security distributions and EPS dividends," Dr Hamill said in a statement before the meeting.
 
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