More trouble for Babcock & Brown

Two listed Babcock & Brown investment funds have announced they will be cutting back on dividend payouts in the second half of 2008 as debt pressure mounts. B&B Power announced a profit forecast at the low end of the range of analysts' expectations and said there would be no distributions in the second half of 2008 due to debt pressure. B&B Communities, cut its final payout of 2008 to just 2.1 cents. B&B shares fell 18 cents on the news, while shares in the two funds also fell.

Source: Sydney Morning Herald