bbi is gone for good, page-13

Hi Towie,

Management only have the incentive to get golden handshakes from BBI/CSI and a smile from the banks instead of handcuffs out of this deal.

This CSI is going to take a far greater slab than would keep them in the jobs they have now, and the banks won't mind cos they will get a nice cash injection which makes the ratios look better. Asic won't mind cos the banks won't cry. Plus the new mob have a lot more experience than the present mob and NOOOO loyalties to existing holders so pretty much anything goes. Dilute it to hell, squeeze another bucketful out for the banks to kkep the ordinaries involved albeit much weaker, raise another fund full to take home, put a swag of management fees in place, keep a controlling 30% stake and walk off with a handsome return on the miserly capital that remains. Almost exactly what BBI did to Prime holders except the original Prime holders are secured so why should they care about BBI ordinaries etc this time around.

MQC has some answering to do for setting up the structure to work only in boom times with no fall back.

The only stabilising factor is the size of the top twenty holders and even that is not a very strong group and easily diluted by threat of suicide. To try to put things right (ha-ha) by shareholder or Sparcs snotty nosed-ness is also suicide. The fact it took Norges Bank until now to exit ONLY shows the faith in the assets. The problems are financial problems and they need financial solutions and Sellar has not been able to come up with a better solution than being replaced effectively by the left right front and rear corner stone investor. All the other holders can camp in the dungeon awaiting bleeding or until the CSI refills and repacks his war chest.

Hey Melua, the original Prime bonds are looking like good value if their contract stands up.

ifandwhen