Jonkey wrote: "What do the banks lose if they call the loans, strip the assets and roll them into their unlisted investment vehicles, supported by their fund management arms, with the wealth of onflowing superannuation and investment monies."
You are right on the money jonkey (the calm voice of reason) and this is where the game has changed. Six months ago, the banks were happy to roll over debt and up the interest rate. The figures do not lie. The free cash flow has been devoured. Make no mistake about that BBI/BEPPA holders. At the ABN Amro conference, Sellar (CFO) was very pessimistic on the banks extending the PD Ports $205M due Oct 30. That was reiterated in their announcement to the market. The banks have all the power here. They will tip it into administration in the blink of an eyelid if they want to and if you are holding when that happens, it's "Goodnight Irene". The banks are SECURED creditors. All other players mean nothing to them except perhaps BBN020 holders. Their holding is very insignificant. People need to know the negatives. That way, they can make an informed decision about whether to hold, sell or buy more. IF this gets tipped into administration, I would hate to see posts where people are whinging and complaining about the system and management etc etc. Everyone has been given ample opportunity by the ASX to get out of this if they want to. It is not all over red rover yet. With a bit of luck and the level headed co-operation of all stakeholders, BBI might be saved. Whether there is any value left for existing BBI/BEPPA holders is the big question. Personally, I am very comfortable in taking all my profits off the table. I may put a significant amount into the new Prime Infrastructure Holdings Ltd if a deal is reached. I do not need or want to hang around now waiting for an imminent triple murder as a best case scenario. To me, that's madness but each to their own.
BBI Price at posting:
5.4¢ Sentiment: Sell Disclosure: Not Held
