"Melua, I cannot see a situation where BBI will be paying a a dividend until:
1. The corporate debt facility is completely paid off."
Answer: I disagree. Dividends have been paid previously whilst corporate debt was in existance.
"2. They have enough cashflow/surplus cash to be able to spend to maintain/expand their existing assets."
Answer: I disagree. Maintenance of assets is already included in cash flow statements. There will be ample surplus to cover all expenses including maintenace and interest payments.
"3. There is a possibility they may need to conserve cash to physically pay off their BEPPA rather than letting them convert into shares, esp if the share price stays low."
Answer: I disagree. BEPPA is a cheap source of finance. There is no need to do anything with BEPPA until the reset date in 2012. They will just keep making the interest payments on BEPPA.
BBI Price at posting:
8.2¢ Sentiment: LT Buy Disclosure: Held
