Last ditch talks were under way last night between Babcock & Brown and its banking syndicate to try to resolve the financial crisis that could plunge the beleaguered asset management group into administration.

Both sides were still hopeful of finding a way out of the impasse, which would require a further lending lifeline to be extended by the group's 25 banks in exchange for a faster repayment of its $3.1bn of corporate debt.

Sydney Morning Herald