Babcock and Brown has submitted a proposal to its lenders on repaying a short-term debt facility, the asset manager said today, adding it expected a response next week, slightly later than flagged.

Earlier, Babcock & Brown shares rose 54% to close at 38.5 cents, on speculation the company had won approval from its bankers for a plan to sell assets as the company struggles to avert collapse. The stock remains 99% below the June 2007 peak of $34.63.

The Age