bbn020, page-2

Otakou,

If BBI shareholders do not accept the proposal, which at this stage I believe is unlikely, the alternatives would be finding another proposal, ie RBS, analyse it with enough time to get to the first maturity date and avoid insolvency by failing to repay debt on maturity. Another option would be renegotiate with bank to refinance and extend maturities which could end up being just a band aid to their cash flow issues. In case of not finding any feasible alternative the unwanted VA would be called and in that case your bonds would be ranked as creditor and, obviously, behind the banks. That's, I believe, is the worst case scenario because even when BBI has great asstes, banks are not there to do asset administration and in that case they would liquidate assets to obtain their securities. BEPPA and SPARC I believe rank before BBN20 (not sure) so, if after everyone has bitten their piece there's something there you would get something for your bonds.
Nevertheless, IMO the lower BBI sp goes the higher the chance BBI shareholders vote Yes. My next concern would be how the BEPPA shareholders will vote, but at this stage I believe the deal is done.
Good luck