Alinta hires advisors to help with debt

Alinta Energy Group has hired Macquarie Capital Advisors and UBS to help look at ways to deal with its $2.7 billion debt.

In a statement issued yesterday, Alinta, formerly known as Babcock and Brown Power, said Macquarie and UBS will consider deleveraging opportunities for the business, including recapitalisation options.

Reuters reported that Alinta needs to repay a minimum of $250 million by March 2011 under new loan terms struck late last year.

The appointment follows an agreement to settle the debts and fees owed to Babcock and Brown International Group and the settlement of a dispute over gas prices with the North West Shelf operators.

Shares in Alinta were up 0.1 cents to 7.6c at 12:06 AEDT.

The announcement is below:

Alinta Energy Group (ASX:AEJ) today announces the appointment of Macquarie Capital Advisors Limited and UBS AG, Australian Branch ("UBS") as joint advisors in respect of further work which AEJ is undertaking to consider deleveraging opportunities for the business, including recapitalisation options, following the agreement to settle the debts and fees owed to the Babcock & Brown International Group,
the successful conclusion to the senior debt restructuring and the negotiated settlement of the NWS Price Dispute.

UBS will continue in its role under a separate mandate as a strategic adviser to the business.