bbp....what to make of it???

BBP is a difficult beast....great assets but a heap of debt....the article in the smh obviously spooked a lot of people, but everyone who bought this share knows it aint no wow or bhp

Debt....

381 million to BNB creditors due march 2010

bbpf facility a 1600m june 2011
bbpf facility b 894m june 2013


ebitda is crap at 265 million

i would expect asset write downs, particularly redbank and cawse....

but now is a good time to be owning gas fired power stations....but what price would they get for them????

Management have had offers, but they have obviously been low ball ones.....and they don't want to tell the public how low they are

But positives....increased gas prices for alinta, bhp contract for flinders, disposal of onerous contracts..



One thing is clear....at current EBITDA, they are toast....they need to dramatically increase earnings, but they will face increased margins from the banks


The article in the SMH implies nothing new....the 381m debt can be payed back IN MARCH 2010

Is it worth a punt....i am expecting it to fall further, write downs on the 2 above power stations are a given IMO...looking to pick some up in the next week or so