Babcock & Brown says there would be nothing left for shareholders after its lenders take their cut under a plan the debt-laden investment company is discussing with its bankers.

'The board believes that in the current market environment and based on continuing discussions with the banking syndicate there will be no value for equity holders under the revised business plan balance sheet restructure,'' the Sydney-based company said in a statement.

Babcock also said there would be negligible or no value for the holders of subordinated notes.

The Age