Reporting by the company is full of inconsistancies....not beyond the realms, that some offer to noteholders will still be made.........(especially if you live in Qld and seen TV coverage of performance of the most senior director of BNB)
One things for sure...nothing will happen unless views, with associated facts are put forward to the company or authorities. In the previous post (under this probably not so appropriate threat)...I have outlined some points. Why not write to the various authorities involved and express your view.
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To put it into a more stark form....do you think it is fair that the banks can get paid $400 MILLION PA from now, at 20% pa fee on outstanding BNB loans, prior to any payment to noteholders.
Go to page 11 of the Notice of Meeting Offer Document...you will see the following wording:
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"However, the Directors believe that the likelihood of any repayment by BNB of amounts owed on the Notes is extremely remote due to the following circumstances: "
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An annual 20% return accrual fee payable by BBIPL to its lenders will accure on the balance of the debt...This would result in BBIPL liability of more than $400 million per year....
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Remember this credit card type interest arrangement was put into place without any shareholder vote.
Noteholders and ordinary shareholders have no chance of ever seeing one cent.....
"DUE TO THE FOLLOWING CIRCUMSTANCES" - they are the words used by the company - its like saying, this is what we (the company) have Done, and thats the reason you will see no money.
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Use some of the addresses that I have shown here. You do the same and they may back down. A $25 per note offer is just $150 million.....yet banks want $400 million PA in interest.
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Chairman
BABCOCK AND BROWN
Level 23
THE CHIFLEY SQUARE
2 Chifley Square
SYDNEY NSW 2000
Dear Sir/Madam
PROPOSED COMPANY RESTRUCTURE
See enclosed letter to ASIC.
It is my extreme disappointment and disgust that management has proposed a restructure of the company, without in my view, compliance with listing rules.
Accordingly it would be my intention to pursue every legal option to ensure compensation appropriate for my investment in Babcock and Brown.
On the 4th December, 2008, the company released this statement:
“Negotiation on Long Term Capital Structure
The agreement contemplates that by 28 February 2009, Babcock & Brown will propose a longer term capital restructure, which is expected to include a debt for equity swap, acceptable to its banking syndicate. The agreement provides for this to be implemented by 30th April 2009”
On the basis of that company release, I purchased .... company notes. As we now know, this disclosure was incorrect. There is to be NO equity swap, rather a debt restructure. How did the company get it so wrong in December, just a matter of a few weeks before a completely different debt funding approach is proposed?.
It would be by intention to look at aspects of incorrect disclosure at some time in the future. The immediate issue being one of the need for a shareholder vote and experts report. (as per the enclosed letter to ASIC).
Legal advice obtained whereby some BBIPL bank subordination arrangement is in place, suggests that it is floored. The proposed restructure, whereby a 20% PA fee is payable on remaining balance of the facilities is extreme and excessive. The 20% PA fee is way outside the bounds of common law fair and reasonable standard. Independent of any other stakeholder actions, I would seek legal recovery from BBIPL, via the court system of the some $....face value of my notes. Much common law precedent exists for reasonableness, which should exclude this excessive proposed 20% fee. The validity of the restructure and in particular the size of the fee, needs to be tested in court
In fact, distain may be a better description of the actions of this companies board, that I feel.
I would look forward with confidence to further dealings with you, to recover appropriate compensation for my investments.
Yours faithfully
BNB
babcock & brown limited
