ubs research on bbp, page-17

kingalpha I think CAPEX is ammortised over a number of years to assume CAPEX of $76M is a payment in only 1 year would be the same as saying the asset had 100% depreciation in 1 year.

As for breaking covenants means admin is the next step well that happens if the banks feel a company cant trade out of its mess or feel they can foreclose and sell at a premium to the loan , some here feel the gamble at present discounted SP to NAV is worth the reward for the risk

In theory If you had 15 companies in a portfolio with a risk reward of a 50% chance of going broke or alternatively quadrupling in value compared with 15 companies with a woolworths type low risk profile then in theory the risky ones should average over all a higher return on investment.

THats probably why people are investing in this