age article re bbi, page-12

Can people now understand why I have been so negative since the full year report was released? The numbers in that report sounded alarm bells. The ICR on corporate debt was dropping alarmingly, cash flow was being eaten up with interest costs, the banks were tightening the screws further and BBI has short term debt of $500M that has to be repaid. I report things as I see it and I think my negative stance has been justified. Let's face it. Without the cornerstone investor, BBI are dead. Gonesky! They were one bankers meeting away from pulling the pin themselves. Voluntary administration. All it would have taken was for the Oct 30 $205M to be called in. That would have put PD Ports into administration which would have triggered a breach of covenant on corporate debt as PD Ports has corporate debt attached to it. All over red rover. Directors can be held personally liable if they trade whilst insolvent. Directors would not have put themselves at legal risk. The cornerstone investor has saved the bacon of existing holders but it will come at a huge cost.

ABN worked that out real quick two days ago when taking part in the video conference call. The company told no lies. They told it as it was. ABN were not to know about this cornerstone investor and BBI, quite rightly, did not divulge this at the meeting.

Any deal will be heavily in favour of the cornerstone investor. BBI have their backs against the wall and the investor knows it.