Because right now the CI has total control and a 3 month block on the rest of his competitors. He can let the ords and prefs death spiral each other into the dust, then come in over the top with his recap proposal at virtually any figure he wants and will end up will virtual control of all of BBI assets, plus those he decides to buy a percentage of directly, which obviously includes DBCT.
If the CI pulled away from the recap and let BBI descend into administration, then the assets he wants will become competitively tendered for by the administrators.
Right now the CI is effectively the only bidder for half of DBCT and controls what happens to the other half of DBCT. I doubt whether they would want to give up this position.
Stand back and witness the firepower of a fully operational death spiral.......
BBI Price at posting:
4.7¢ Sentiment: None Disclosure: Held
