convertible notes questions, page-22

Ferrymanau....you said:

"In the event of a takeover, the company the company must Convert the notes but only if the noteholder so elects.

My feeling is that these stipulations were'nt written with a liquidation in mind, but were to cater to an event where the Noteholder would find a Conversion more favourable than a redemption if there was a default."

YES I agree totally with you now.

Bottom line as I see it...the company cannot really force a conversion if the noteholder doesn't want it and so the 4 notes to one ord share is a non-event.

I'm sitting waiting for maturity date!

BTW...I believe the company is talking closely to its bankers about covenant matters particularly in the retail and office funds. The banks are concerned about the retail fund but they are very comfortable with what the ocmpany is doing.

You can look forward to a few BEC properties going onto the market in the next few weeks because the markets hesitation to acquire in the hope of a "fire-sale" of Centro properties has now ended. Besides, there is cash sloshing around and bonds or cash rates must be deflating for the bigger players.

Why not grab a decent property investment where you can get yields of 7% to 10%

I'm impressed that BEC has a rationalisation plan and they are working that plan...surely this must be comforting to financiers who must have many more basket cases to contend with before they look to snuff out BEC.

The only doubt must be with any finance that has been obtained from overseas because they seem to want to repatriate and are not extending facilities...and I just haven't checked this with BEC as yet.

Cautiously I say that this is looking better.