IMO.If this was a widget company, then the banks could quickly...

IMO.

If this was a widget company, then the banks could quickly decide if it was a basket case (administrators) or a value prospect (use step in rights).

These decisions have been dealt with in their multitudes in the last 12-18months. And before the WFC.

BBP is however more complex, for several reasons.

1. Under CPRS the gas assets will receive better net prices but the Brown Coal assets will have to stump up an (unknown) amount of cash to buy generation permits (effectively) to generate an unknown gross profit. Net effect??? Implementation date??? Big question.

2. Power markets. OK, note the comments above (at at gross level) the power market is stable, but IM(not very humble)O (and I have some background here) the swings and slides are enormous. Most critically, the way Sarbanes Oxley is being interpreted decisions in a generator's forward book could have a major impact on a banks implied profit if they step in. If they don't step in, (from a prior poster) they are earning 9% from the debt base. This is a motza more than shareholders are earning.

3. The debt schedule provides banks with a number of future dated options. If they step in, all those go, and they become the people who have top make this work. Blea.

4. Lastly, and most importantly, a la Brantley's comment. The banking syndicate works as a committee. When was the last time a committee was simple, incisive, clear in its reasoning, unaffected by internal politics, and quick.

yep, you've got it.

lol

f111