beppa in 2012

A lot has been said about BBI's ability to pay out BEPPA holders in 2012 or convert BEPPAs to BBIs.
An important point that has not be mentioned is that there is also the option for BEPPA directors to accept new terms for BEPPA after 2012 with a new reset date. Remember the Chairman of BBI is also the Chairman of BEPPA and diluting BBI by converting BEPPA at a low BBI price is "not in the best interests of either BBI security holders or BEPPA holders". It will not be happening. End of story.
BEPPA is a dirt cheap form of financing for BBI. They only have to pay BBSW +115 points which is a bargain in the current financial climate. If they were to negotiate new terms in 2012, the market rate for a hybrid such as BEPPA would be more in the order of 700 basis points above BBSW.
So come 2012, if BBI haven't got the cash to pay out $1+ to BEPPA holders and the BBI price is significantly LESS than $1, the most obvious option is for the BEPPA Board to accept "new terms" from BBI and reset for another 5 years or so at something like BBSW +700 basis points. If BBI is going along fine in 2012 and I'm still holding BEPPA, I'll be more than happy to accept new terms at an interest rate on face value of BBSW+700, considering I have paid an average of less than 9c in the dollar for my BEPPAs. If for example BBSW is 5% in 2012 and BEPPA is reset at BBSW+700, that would be 12% on $1 face value. On a BEPPA purchase price of 9c, my yield will be 133% per annum for BEPPA. That will do me very nicely. Whichever way you look at it, BEPPA is simply a bargain at current prices. The chances of BBI going into administration lengthen every day and even if they do, there is every chance enough equity will be there for BEPPA holders to receive their $1 per BEPPA security.