bnbg, page-19

A couple of points....market cap capitalisation is about one hundredth of the debt in the parent BNB.

Company has made it clear that a bank debt for equity swap is very much on the cards.

This means that even if only a portion of the debt goes to issue of more shares, (I suspect all the debt will be converted to shares however)....it is certain that change of control of the company will occur. Company would likely be delisted, with current shreholders still having a stake, albeit in the bank controlled entitiy.

Mean for ordinary shares.....the value of the existing shares lie in what portion of dilution occurs. Probably could talk at much more length another time.


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In some ways the subordinated notes are not so complex to value....at least, when terms are released at the time of the company restructure ( bank debt swap).

Note holders are immediately able to request an Exchange or Repayment ....should the swap take place, as a result of CHANGE of CONTROL of the company.. Means noteholders would be issued ordinary shares to the face value of $100....or far less likely repayment of $100 per note.

That is exactly what the prospectus or contract says.....it can only be changed by consent of the note holders...or when the company is wound up.

Obviously the banks have their interests first...I detected a hint in that last company advice, that banks want the company to contunue...(retain staff, easier to sell assets).

In some respects that gives the note holders some ability to secure at least a significant portion of the $100 face value.

Only under the threat of winding up the company....could the banks seriously negotiate with the noteholders. Otherwise noteholders could or should inded insist on their rights contained in the contract...(ie $100 worth of new shares. upon change of control)

Cut a long story short....I purchased in on this basis. Do the banks want to keep the company alive....well than, they have to negotiate with the noteholders - pay them the $100 or at least a fair amount $50plus....or wind the company up.