Ann: Commencement of Expressions of Interest Campaign-AZZ.AX, page-6

So basically ever since the sale of Southern Star all AZZ had was
1. 4.3 million BBEP shares
2. the cash on hand
3. Nil reserves but 20,000 acres

In June-15 BBEP was worth 5.00 USD = $30M AUD and it had circa $7M AUD cash = $37M AUD. But had notes expiring to the tune of $46M AUD (i.e. insolvent).

So what did management do? - they found Wade Energy with their offer of $250M US for nil reserves - absolutely ridiculous!!!

The reality is with nil reserves, as soon as BBEP's market value plus AZZ's cash on hand < the value of the outstanding notes being circa $50M AUD, AZZ was insolvent and should have repaid those notes.
It is not realistic for them to have ascribed any significant value to the nil reserves despite there being 15,000 acres of lease.

The good thing here is that I now believe noteholders will be getting nothing too and hopefully this will force Aurora to pursue some sort of class action...

Essentially, noteholders funds were invested into BBEP for the sake of shareholders. Once the value of BBEP crossed below the outstanding notes, in my opinion it was time to pull the pin not try negotiate the sale of a millenium on something worth $1m now, $4m then...

Really want to reread Strachan's research reports too - this really should have been picked up there....