BBI babcock & brown infrastructure group

wilson htm view, page-11

  1. 4,510 Posts.
    Interesting comments about the lack of DBCT bidders, or the low levels they are bidding at.

    I reckon the failure to sell DBCT could be the backdrop for a predator to appear and support a BBI recap and a prefs restructure in order to secure control of the asset by taking control of BBI.

    If someone came along and injected the money into BBI it needs (eg $1B), they could quite easily let DBCT trade on for 12-18mths at the increased capacity and then float it off based on those results or even partially float it and give out directly the remainding DBCT shares to BBI ords holders by way of an 'in specie distribution' as a part exchange for a BBI share cancellation for a corresponding value. The sale of the company's share for cash (ie the share not distributed to shareholders) would help to see off any debts remaining.

    Something like this would assume corporate debts are well taken care of first. Corporate lenders could object to this, but asset level lenders would not have much say in that.
 
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