bnbg, page-66

Dargie,

>A key issue is whether the banks will actually try to include the bonds into the debt for equity swap or whether they leave the bonds as they are and allow the company to resume paying interest on them.

My pick is that they will simply leave the BNBG's alone:

- it is cheap money, at current rates. Any reorganisation, the subordinated debt is going to demand a massive margin over BBSW.

- the quantum of debt is insignificant, in the scheme of things.