for ex hedges

Hi guys,

Hoping someone can help me out here... I am looking through the Foreign exchange hedges for BJT and am getting a little concerned...

In the 1H09 presentation it would appear that BJT has both capital and distribution forex hedges in place with negative values of $58.5 and $27.9 million AUD respectively.

In the accounts this "loss" is more than offset by an increase in NTA of $182 million AUD, due to Yen and AUD movements.

Some of the hedges can be terminated by either party on the 15 August each year, which if the case BJT would have to stump up AUD$68.7 million.

Given that the 1H09 report recorded forex rate at AUD1 = JPY62.45, and now it is at about JPY75 I work out:

1) Negative values of MTM hedges will have reduced (about 20%)
2) NTA in AUD will have also reduced (again by about 20%)
3) The potential CASH that BJT could have to stump up on the 15 August 2009 IF its counterparty terminates the hedge has also reduced about 20% - to about AUD $55 million.

Question - do you think counteryparty will terminate hedge and ask for cash in August ??

How will BJT finance this if it is the case ??

Why did BJT get into these types of hedges in the first place ??