bbi eps (beppa), page-8

The two page press release that states the "current intention to redeem the EPS and issue Equivalent Securities" is one of the oddest press releases I have ever read.

First it sounds like they are thinking out loud. In effect the release says "Well, what we would actually like to do is substitute BBI EPS with equivalent securities, but we are not sure we can."

Second, does any BBI EPS holder actually believe that they would ever get something *equivalent*?! I mean come on isn't it just obvious that the real intent would be to give us something less desirable in order to pigeonhole the loan in a limbo status that never needs to be serviced except as junior debt?

If there real intention is simply to postpone the dilution event, that they could do without creating new securities. They could simply propose to BBI EPS holders to accept a new security that offered some additional sweetener in exchange for which the EPS might not come due until 2014 (for example). That's not the tone I read in the release. The approach I sense here is they want to find a way to force all EPS holders into a less desirable "equivalent". It doesn't inspire confidence.