bbi warns of wipeout threat, page-30

I would be particularly surprised to see the banks not agree to a recap, unless the terms offered were really poor etc, which I don't think they will be. After all, the more the CI puts in, the bigger the dilution, and that is what they want. Banks not likely to stand in the way of that.

Where the trouble is getting it across the line with the various secrity holders of the ords, prefs and SPARCS. And also getting the deal done in a reasonable time frame do that it does not drag on and the asset level banks become restless.

I think the ords holders pretty much have to take what it coming.

I think the prefs holders may posture a little, but BBI will negotiate with the larger players as to what is reasonable, and then put it to the holders in a meeting and the big boys vote it in.

I think the SPARCS holders may be a little harder to corral, given their voting down of the amendments put to them in May. They may strike out for a better deal than the prefs holders, and from a security position they are in a better situation, but at the end of the day they will get nothing in an administration as well, so they really need to take a fair deal when it is put to them.


BBi is going to need to be nifty on its feet. I think they probably know roughly what they are planning with the various security holders and they are negotiating right now with the banks. That is what is holding up further announcements. There is no point carrying on if the banks knock them back at the start.