babcock and brown, page-13

I'll chuck my 2cents in here....

BNB is technically insolvent and its secured bankers are in total control. If BNB used market to market for its assets it would have negative equity. It is being allowed to trade IMO becasue the secured bankers are using the satalites to reduce their exposure, I agree with Longhair BNB should not be allowed to trade as it is only protecting the secured creditors of BNB at the total expense of unsecured creditors and equity holders of satalites......If BNB went into administration then there would be no managment fees payable (managment fees that go into the secured creditors overdraft and reduce their eposure) and there would be no prospect of satalites paying money to buy BNB managment rights, (again money that would go str8 to reducing the secured creditors exposure..) Personally I dont think it will be long before an unsecured lender in one of the Satalites takes BNB and the Banking syndicate to court to challenge this....ANZ for example is just one lender with $250M unsecured loan to BBW, now they dont want BNB getting paid managment fees, or BBW having to buy the managment rights as this erodes thier position if the wind sales dont go to plan....a war amoungst the unsecured banks in the satalites and the secured bankers at BNB is brewing...