Sydney Morning Herald

Saturday December 26, 2009

Clancy Yeates

BABCOCK & BROWN POWER has officially changed its name to Alinta Energy, in an attempt to sever links with its collapsed former parent.The utility changed its constitution to reflect the new name on Christmas Eve, a day after its shares emerged from a month-long trading suspension by jumping 23 per cent.The name change comes after Alinta this week concluded a deal with the North West Shelf joint venture over a disputed gas contract.Alinta will book a $132 million loss from the contract, but the North West Shelf venture has agreed to a moratorium on the money it is owed, giving Alinta valuable time.A related deal between Alinta and its bankers, also concluded this week, has warded off the threat of administration over $2.7 billion in crippling debts.But in a sign of the uphill battle facing the company, Alinta shares ended the week at 8.8c, 97 per cent less than their 2007 high.

© 2009 Sydney Morning Herald

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