causes for concern for bbi, page-23

1. The ability to withdraw the conversion requests is just a formality.
2. The rollover of the debt at least removes the doubt that this could have been a problem. Getting stiffed for a much higher interest rate is a concern though.
3. The delay in the sale of the Euroports holding is a concern for me.

People need to have a darn good read of the prospectus to extend the SPARCS notes to Nov 2010. It lists out all of the risks and there are many.

One good point was it said the sweep facility remains in place until such time as BBI are restored to an investment grade credit rating. Where that point is remains to be seen, but you would think it would involve a large chunk of corporate debt needing to be repaid first. Still, if they sold 100% of DBCT for a decent price and freed up a whole chunk of cash, surely that would warrant the credit raters to have a rethink on the low rating that was issued earlier in the year.

Another good point is that the corporate debtholders can block the interest on the SPARCS bonds if they need to, but have not done so to date (and the next interest payment has been announced as going through).

I have tried several times to understand what the minimum exchange number being changed to .175 means and I think I have worked it out. It basically means if the share price is greater than .175, you still get swapped into BBI shares at .175. This is not very likely to happen because one would assume if the BBI share price was 30-40 cents then something dramatically different would have changed and they would be able to pay out these notes in cash.

It is clear from this prospectus that there is still a lot of water to go under the bridge for BBI.