abn amro analyst view, page-19

The analogy of comparing BNBG to BEPPA is somewhat misinformed (to put it politely) and shows a distinct lack of understanding of both situations.

BNB was a holding company that had a myriad of minority investments in satellites it floated and conned the banks into giving them corporate debt to do so. And further conned noteholders into giving them the bond money as well.

BBI directly owns all of its investments and it investments are trading companies that actually do things and provide cashflow and profits. Most of the BBI debt is attached to the assets directly, whereas most of the BNB debt was corporate debt not attached to anything and hence it folded up very quickly when the banks applied some pressure. BEPPA is also tacked on behind all other debts.

However, to compare BEPPA to BNBG is not apples and apples. BEPPA are preference shares and BNBG were bonds (and pretty low ranking bonds at that). If BBI survives, the BEPPA (in their current form) simply turn into shares. BBI does not have to physically return the cash on maturity, whereby BNBG had to.

Now I am NOT saying that the BBI situation isn't serious, but it is quite different from the BNB situation. They were totally different types of companies. Comparison between the two only comes about because they have a similar name. This is what has provided us with such great entry points on the bonds, shares and prefs (depending on your risk profile) because of the ignorance of the situation leading to the panic selling of BBI securities.

Please think before you post.