babcock & brown infrastructure's (bbi) dalrymp, page-12

"BBI needs to conserve cash to pay off its corporate debt pile and then also to say up money to redeem its BEPPA if it needs to or come up with the money (ie themselves, not from debt) to buy these out and avoid dilution."

BEPPA conversion is not a problem whatsoever. No decision needs to be made until 2012 at which point BBI will be in excess of $1 per security. Dilution on a one-for-one basis will be fine. An extra 800M shares can be issued but at the same an $800M liability disappears.