Babcock & Brown Infrastructure Group seeking to repay debt and avoid collapse said that Brookfield Asset Management Inc will relinquish its claim on the company’s Australian energy, transmission and distribution assets.

Babcock Infrastructure in a statement to the Australian stock exchange said that shareholders in BBI EPS Ltd a special purpose company that was formed in connection with the acquisition of Alinta Ltd will receive any money generated from the sale of those assets.

The statement said that BBI EPS shareholders will also get about AUD 333 million under a successful recapitalization of Babcock Infrastructure.

Babcock & Brown Ltd. combined with Singapore Power Ltd to purchase Alinta, then Australia’s biggest owner of gas pipelines and power networks for more than AUD 7 billion in 2007.

Babcock Infrastructure which cut ties with asset manager Babcock & Brown in August said that it planned to sell equity and assets for AUD 1.8 billion to help repay borrowings. The company had AUD 8.9 billion of total proportional debt at the end of June more than 60 times the company’s stock market value including AUD 300 million that matures in February.

(Sourced from Bloomberg)