my bbi valuation / dbct sale flows, page-187

There is no death spiral and there can be no death spiral. If it comes to 2012 and there's no cash to stop conversion and no restructuring happens, then the 800 million BEPPA holders will effectively share out all the equity and the BBI holders will be left with close to nothing. In that case there will be a BBI death plunge to 0.1c - as low as they can go, basically - but BEPPA should trade somewhere around 1/800000000 of the market's best guess at the company's net assets.

(If conversion happens at 0.1c, each BEPPA will turn into around 1200 BBI.)

I agree with Dargie that this would be pretty ugly and a restructuring to avoid it would be likely. However I agree with Melua that, being three years away, this is simply not a concern at the moment. There are bigger and more imminent problems.

There really should have been a minimum conversion value in the BEPPA set up.