chances of a bounce tommoz?, page-36

dargie,
I was telling BBI to sell 100% of DBCT months ago. They insisted 49% was enough. You and I both knew nothing less than 100% was going to cut the mustard. In a way, I am glad the banks have put the big pressure on now. BBI are now a forced seller and that's fine. Management of any company will always look after their well paid positions before anything else. It's human nature. If we believe the assets in total will bring book value or higher, NAV is 92c after all debt is paid including the repayment of all BBN010, BBN020 and BEPPA. This will be a windfall for all holders if they can execute the sales at book. DBCT is in the books at $1.9BN with non-recourse debt of $1.7Bn. The consensus is that it will sell for circa $2.7Bn. Maybe more? Once that is sold, they can pay off $1Bn of corporate debt and increase the NAV by $800M or 31c per BBI security.
NAV then becomes $1.23. Sell DBCT and BBI are safe. Don't sell DBCT and the banks will bleed the company via higher and higher refinancing costs. The longer the banks are in control, the greater the chance that the NAV decreases over time due to asset impairments as a result of higher interest costs. Anybody that has debt will know that as the cost of that debt rises, the pressure get greater and greater. The only solution for BBI is asset sales. I say sell everything, pay back debt and return circa $1 per BBI to all security holders. In other words, wind the company up in an orderly fashion.