be exceedingly careful

BBI sparcs has sent out notice of meeting to determine reset, N.B. one of the conditions is that NO distributions will be made to BBI and beppa until sparcs are paid out, that is November 2010. Also the number of shares obtainable under convesrion is a function of VWAP, which suggests that traders may do well (for a time!), but holders may not for a LONGER time.

herewith a broker's report (ABN Amro)

Hi

Update on asset sales (little news other than DBCT is progressing) and link to documentation which has in part been sent to holders of SPARCS.

The Notice of Meeting and the Explanatory Memorandum has been sent to holders of SPARCS. The following website link provides access to both of these plus the Short Form Prospectus.

Holders have been offered an interest rate of 10% pa from 17 November until the next Reset Date and the next Reset Date will be 17 November 2010
The Extraordinary Resolutions seek approval for
First Extraordinary Resolution: Amendments to the Trust Deed. P5 sets out a table of the Existing provisions of the Trust Deed and the Effect of the Proposed Amendments
Second Extraordinary Resolution: Clarifies that the Reset Notice sent by BBINNZ was timely

If these are passed then BBINNZ will give a written undertaking to BBINNZ that it will not make any cash distributions on the Stabled Securities and BBI ESP the same on the EPS for so long as there are any bond on issue. These proposed amendments have the unanimous support of Directors of BBINNZ, who recommend that bondholders vote in favour of the Extraordinary Resolutions.

if the resolutions are passed, no bonds will be converted on 17 May 2009 (no matter what conversion Requests have been received).

Currently the BBI Stapled Securities are trading at 7.6 cents. Previous correspondence still applies regarding the issues with selling the converted BBI Stapled Securities on the secondary market and on balance favour giving the company a further year to try and get some resolution. Interest continues to be paid on the SPARCS.

It is important holders vote given the quorum. Will have another discussion with the company this week and try and get a better understanding of the views of some of the larger investors which will potentially be critical to the outcome.