chim chimney chim chimney....., page-60

Am still my cautious self. Several things have changed though, as follows:

(i) the GFC seems to be pulling away from the abyss. Conditions, although still tough, are nowhere near as panicky as they were a few weeks back.

(ii) I think the changes in the GFC will bring more bidders out for DBCT and I think the prospects of getting good bidders and a reasonable sale price have improved considerably in recent weeks. If they sell 100% of this for a good price, makes a massive difference to the short term and long term fortunes of BBI.

(iii) I think the 'sweep' facility put in place was a very smart play and every time the bank account is swept it pays down debt. Anything that reduces debt owed on the corporate facility (esp European banks in the facility) is a good thing. I think BBI should run with no corporate facilites at all.

(iv) The 'sweep' process, whereby money is diverted to buy BBN020's at a discount, that is a great leap. These bonds have dilutory implications if not repaid, but now it appears apparent that these are going to be repaid through the sweep process. Also the company makes windfall gains for each bond bought back at a discount.

(v) The rollover of the SPARCS bonds (subject to vote in May) for another year also puts off potential dilution. This was a really big win for BBI. Furthermore the road block put in place to block preference dividends and ord dividends and buybacks will make the repayment of these a priority for the company as well. Once the BBN020's are taken out, they may even get to have a crack at these at a discount as well.

(vi) There are other infrastructure deals still happening in the marketplace at present, and at reasonable prices as well. There still seems to be money around for decent infrastructure assets. More importantly, BBI does not seem to have any exposures to property.

(vii) The failure and adminsitration of BNB is a positive for the satellites and the banks now seem to be more negotiable on the cancellations of mgmt rights at knock down prices.