sparcs, page-38

BBI binged out on the corporate overdraft, which was nothing more than a floating second mortgage on their existing assets that were alread encumbered to their main lenders. The banks were conned into these facilities and they want their money back now. They will most definitely not rollover and there will be no refinancing from these banks.

The saving grace is the coal terminal is very saleable and will eliminate the corporate debt. What happens after that, well it will be very interesting.

Certainly the environment for selling anything in Europe is deteriorating very rapidly at present. European banking system is in bigger trouble than the US banking system and they have the added trouble of cross border problems to overcome that the US does not have. BBI must get all its European banks paid off from its corporate facilities as soon as possible, because if they do not there will be no mercy shown whatsoever if facilites are not cleared away.

What is going on in the European banking system at the moment is really serious, and now UK is coming under pressure as well.