BNB will likely be put into administration in the next few months as BBSN debt holders file "Exit Notices" demanding repayment of the face value and accrued interest on their notes.
BNB will have mainly the ex-BBSN noteholder creditors present at the creditors meeting.
AT THIS CREDITORS MEETING - the fate of all BNB assets is in the hands of outraged ex-BBSN noteholders. The bankers will not be present - they have structured their debts in BBIPL.
BBIPL owes BNB money. BBIPL is controlled by BNB.
A motion instructing the receiver to put BBIPL into liquidation is a matter to be considered ONLY by the creditors at this meeting.
THIS IS THE ONE AND ONLY CHANCE TO COLLAPSE BBIPL.
If BNB is held in administration pending the 2018 "resolution" of the unsecured BNB loans and the ex-BBSN noteholders become unsecured creditors in BBIPL because of the BBSN guarantee ... both these groups will get nothing.
The Bankers are funding their "restructuring fee" at 20% of a multibillion dollar debt - per year. Potentially this is multiple billions$$ in "restructuring fees". This eclipses the current interest costs by miles. These fees and loans are senior to the BBSN guarantee and the BNB loan.
BBSN holders have been backed into a corner. BNB directors are telling us we have a chance of a "negligible" return. They cannot even promise to present a BBSN restructure proposal.
All this and the fact that it is ALL THEIR FAULT we are in this situation. Their main interest, it seems, in negotiations with the Banking Consortium was to PRESERVE THEIR OWN BONUS INCOME.
Larkin tells us - in the Tony Boyd interview - that BNB was viable in terms of covering the interest payments. He tells us the only issue was the terms on which the banks refused to roll over the debts.
So, the bankers actually created the problem by withholding liquidity. Well, the bankers can now share a bit of the pain. We BBSN holders prefer the honesty of a formal insolvency rather than the thin bitter dish the bankers want to dish up.
You back large number of retail BBSN holders into a corner - you ask them to commit financial suicide because you want to preserve your bonus payments. However, they have a nuclear device with a BIG RED BUTTON activating the detonator.
PRESS THE BIG RED BUTTON!!
I can hear the cheering from BNB satellite holders as the management contracts go up in smoke.
BBI Price at posting:
8.1¢ Sentiment: Hold Disclosure: Held
