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Babcock and Brown Infrastructure Group (ASX:BBI) no alternative recapitalisation proposal from RBS

Babcock & Brown Infrastructure Group (ASX:BBI) has rejected media speculation that Royal Bank of Scotland might provide a possible alternative recapitalisation proposal to the proposal to be put before shareholders today.

The company says RBS has confirmed over the weekend that there is no alternative recapitalisation proposal.

In light of this the company reiterated the importance of the existing recapitalisation proposal saying it is critical in securing the financial position of Babcock & Brown Infrastructure and is the only proposal available to securityholders and EPS holders that is capable of being executed.

In a letter to Babcock & Brown Infrastructure, RBS says that whilst there has been strong interest in developing an alternative to the current recapitalisation proposal at this stage an alternative will not be submitted.

Babcock & Brown Infrastructure says that it would take a long time to develop any alternative proposal and that an alternative proposal, given the processes of due diligence, transaction negotiations, regulatory approvals and so on, is unlikely to be implemented until 2010, if at all.

Babcock & Brown Infrastructure pulled itself out of the red in 2009 to post a NZ$107 million profit.