sparcs, page-35

"BBI should never have had corporate debt in the first place"

All things are good in moderation Dargie, even corporate debt. The problem is that they went into the global financial crisis with too much debt, which they now need to sell assets to rectify. It is no different to REITs...whilst they will come out the other end of the crisis with lower gearing, they will still be run with corporate debt. And no different to a company having debt. As long as in the case of BBI you consider both corporate and asset level debt, as well as factor in recourse and non-recourse features. This is well supported by modern finance theory, which I assume will still have some relevance in the years ahead!

Assuming they can clear most debt but still have a reasonable portfolio of assets, leaving primarily BEPPA, I can't see them having issues dealing with BEPPA. But ultimately, if they can't, well BEPPA holders just end up with BBI shares. I have mostly BEPPA so very comfortable if this was the outcome, yet not expected.