Bad announcement in my opinion. They clearly state that:"The net...

Bad announcement in my opinion. They clearly state that:

"The net new equity raised after transaction costs and other payments will not materially change the current gearing levels of BBI, or address near term debt maturities at the operating businesses."

So even if this recap process happens and BBI holders are diluted the company still needs to sell assets to survive!

furthermore:

"This outcome is central to the BBI Directors assessments of whether $400m of new equity could be raised in these circumstances"

I.E. will existing shareholders be willing or able to stump up the cash to participate in the recap process. In my opinion some holders may be but there could still be a significant short fall which will have to be underwritten/picked up by someone.

"The board also has a number of concerns as to whether legally and commercially the proposal submitted by RBS can be executed"

Highly uncertain environment surrounding the proposal and they again say the deal could result in a value less than recent trading prices or face value.

All the above have been quoted from the announcement how anyone can believe BBI/BEPPA are a good play after this is beyond me.

But as always do your own research and good luck