scenarios, page-19

I was wondering if someone who has a better grasp than me on the whole SPARCS reset announcement scenario could give an analysis/opinion on the pros and cons of SPARCS conversion. Possibly Melua or Jonkey.

From my non exsistent experience and limited knowledge of the whole issue, it appears that the BBI Directors, with the bankers gun at their head are forced to state their intentions are to exchange SPARCS into stapled securities.

No doubt, some of the SPARCS holders will elect to exchange. I note what you say Nick, "why the hell would a sparcs holder convert to BBI in the next few months and get bugger all of nothing".

The more SPARCS conversions that occur, the more dilution of the stapled securities would occur. Possibly some SPARCS holders may see this as an oportunity to pick up bucket loads of stapled securities at firesale prices, depending on the how the VWAP plays out, but they would obviously have to consider the dilution effect of conversion.

Alternatively SPARCS holders may elect to agree on the reset terms and it appears to me that BBI directors are hoping/hinting that a reset is more beneficial to the SPARCS holders an therefore more beneficial to stapled security holders.