my analysis of today's announcements, page-10

great post.

cap raising may not be for ordinary share. look at euroports- convertible bonds(converting into larger slice of euroports). i know issuing even more bonds/debt isnt a great idea but if it gets banks of our backs why not?

convertible bonds have the benefit of protecting buyer from beppa dilution, simply by setting bonds to convert after july 2012.

interest on bonds would be high, but i suspect lower than some of our current debt.

BBI have alot of BNB friends and can easily raise funds in that way. Wouldnt even surprise to see a large part of dbct proceed from bonds. sell 51% for $1.3bil cash. the buyer then buys $1bil convertible bonds.

The 1.3+1bil then pays of asset level debt and the short term corporate debt.

In 2 or 3 years time, if BBI cant refinance or payback the bonds, they simply convert to the remaining 49% dbct. the bonds are attractive to buyer because they have a chance to secure 49% dbct for $1bil in few years.

they are attractive to BBI because they remain co-owners of dbct and can gain earnings and exposure to the recovery.

corporate level it can be done too, simply by converting into BBI shares rather than into just one asset.
just food for thought.

the pullback today is no big deal, still up 30%, kind of expected. may rally again soon.

cheers