Struggling infrastructure house Babcock & Brown has warned it will become technically insolvent as it prepares to make a series of huge asset write-downs as part of efforts to push through the sale of its aircraft leasing and property businesses to pay down debt.

The asset write-downs — which have yet to be be finalised but are expected to run into the billions of dollars — will result in the level of debt sitting inside the company far eclipsing the remaining value left in its infrastructure business.

The Age