massive wall being built, page-36

Yes redfaces, talk of more preference shares is a waste of time. Not even worth debating, it's that unlikely.

Also nathanblack, I have issue with this:

"BBI consists of :
6.corporate debt
5.network bonds
4.asset level debt
3.sparcs
2.beppa
1.ordinary shares"


BBI actually consists of:

4. Asset level equity, with debt attached to assets.
3. Corporate debt (including the networks bonds) which is currently being swept.
2. SPARCS bonds, maturing Nov 2009 for those who convert.
1a. BEPPA
1. ordinary shares


4 may require a little more work on one or two fronts in ensuring the asset equity survives to the long term (as we saw recently with Euroports).

3 you would like to think would be partially taken care of IF DBCT sells for a decent price, but it is going to require more than the sale of DBCT to eliminate the corporate debt, and I would be surprised if the corporate banks showed any leeway at all when renegotiating this position.

2 SPARCS bonds will get a massive conversion in Nov and mostly go away. There is little loyalty to the company from these holders. Dilution could be considerable, unless there is some very positive news between now and conversion.

1a and 1. This is where the action is. The terms of the BEPPA are crippling BBI at present and they will drain whatever 4 is providing in terms of cashflow, to the point where if they try to service the BEPPA interest, it could lead to interest cover breaches for BBI.

The BEPPA must be restructured. The BBI and BEPPA holders are inextricably locked together. If they want to death spiral each other into the dust, well it will happen if they are stupid enough to do so. While the BBI ord share prices stays low, the BEPPA will stay low with it.

Again I say that a restructure of the BEPPA, allowing the way for a steep ords rights issue of some sort to allow the company to recapitalise itself, is the way forward for BBI. This cannot happen until the corporate debt is mostly cleared away.