Babcock & Brown Limited (BNB) has requested a voluntary suspension of its shares and subordinated notes. The troubled investment firm said it had asked for the suspension because it had still not received a final response from its lenders in relation to a refinancing proposal.

Last week Babcock & Brown submitted a revised business plan to its financiers that it hoped would stave off administration.

Babcock said today it expected a final response in the week of 26 January and the suspension would remain in place until then.

The company previously said it would reach some sort of arrangement with its banking syndicate by 9 January, however that date came and went with no announcement of a decision.

Earlier in December, Babcock & Brown secured a $150 million funding facility from its financiers to address the immediate funding requirements of the business and keep the company from entering administration.

The facility was given on a 'pay if you can' basis, pending an arrangement that would address the repayment of the $150 million short term funding facility and form the basis of discussions to pay back billions of dollars worth of debt.

Babcock & Brown said the agreement would most likely come in the form of a debt for equity swap. The company warned that such an arrangement would significantly reduce the value of any existing equity.

Babcock & Brown shares were suspended at 32.5c.