Interviewed yesterday by Tony Boyd of Business Spectator.Tony Boyd: Michael, you've announced a restructuring which basically means the equity holders and subordinated note holders get virtually nothing and the banks are going to get their interest paid when you sell assets. Could you tell us what went wrong to get to where we are now? What actually did Babcock & Brown get wrong?Michael Larkin: We announced during the course of 2008 where we expected to be in terms of our earnings and what we were planning in terms of asset sales, most notably sales in European Wind - assets that we thought were very attractive - but also sales of US wind assets. What we found, first and foremost, was that there was an absence of purchasers for these assets. One of the first things that occurred was the absence of the availability of credit for purchasers to look to acquire those assets. At the same time there'd been a substantial softening of the real estate market flowing from the US housing downturn.There was also a culmination of issues associated with the financial crisis which led to almost an absence of availability of credit in the markets. That absence of availability of credit meant that for a company like Babcock & Brown, which was dependent on transactions to meet our guidance, there were significant restrictions on us. The real asset deflation that started to occur was reflected in the real estate assets and that exacerbated our position. That deflationary impact on pricing flowed through to infrastructure assets as well.Boyd: It would seem to me that two fundamental things went wrong: your risk management was not good enough and secondly, the former management who have left the company were too slow to react. I think Phil Green, the former chief executive, said in May last year that the worst was over and obviously that wasn't the case. Do you agree with that?Larkin: Look, I'm not going to comment on what other people may or may not have said and I can't recall that Phil said that at the time. In any event, I don't think many people could stand up and say they predicted or understood the nature and extent of the financial crisis that we still find ourselves in. In May last year many commentators from all walks of life were of the view that there were turning points which never materialised. Just to go back to your first point, in terms of risk management, I think to understand Babcock & Brown it is important to know that we really conducted two businesses. We conducted a business of originating and trading in assets and we conducted a business of asset and fund management. And in relation to the business of origination and trading in assets, including assets that we developed, that really did need to have the availability of credit for that business to continue. The absence of credit and the speed with which that credit left the market we