Babcock and Brown Infrastructure (ASX:BBI) shareholders have approved a $1.8 billion recapitalization plan, to help it cope with mounting debt.
Around 88% of investors voted for the proposal, which will see Canadian asset management firm Brookfield provide a cornerstone investment of up to $712.5 million to acquire up to 39.9% of the company.
In total, the proposal will see Babcock and Brown raise $1.5 billion in new equity, and $295 million from the sale of certain assets.
The recapitalization is essential to help deal with the company’s $8.86 billion in total debt, with $300 million worth of payments due in FY10 alone, BBI said while announcing the proposal.
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