The key issue with the BBIPL solvency question is not that BBIPL is solvent or otherwise. It will be proven to be insolvent when the BBIPL guarantee of the ex-BBSN capital is called.
The issue is that BBIPL can have an Administrator appointed. The second this happens, the banks have a floating/fixed charge over all the assets of the group. They appoint a receiver to tidy up things based on their security. There is no need to tip operating subsidiaries into administration/liquidation when the receiver (working for the banks) can run them down nicely over 9 years.
One further thing the banks are not calculating is the potential for amalgamation of all 100% owned entities.
I would love to be in a position to order the amalgamation of BBIPL with BNB!!! This would require the consent of the BBIPL minority owners.
Just imagine how much the banks would fear having assets over which they have security amalgamated under the control of an administrator hostile to the receivership process they are trying to conduct.
If I was a BNB ordinary holder - this is the type of thing I would be trying to do RIGHT NOW!!! SGM - new board of directors - start amalgamating in prep for the liquidation.
As a BNBG/BNB010 holder - we will have our shot at this.
Make no mistake - we will be fully prepared.
BNB
babcock & brown limited
