beppa in 2012, page-67

You can see from that debt schedule that I posted yesterday that once DBCT sells, they are pretty well out of the poo. A full sale of DBCT would eliminate all corporate debt. A 50% sale would eliminate it all until Dec 2011.

Think about this:

If they're corporate debt free and their remaining assets generate net cash flow of say $200M a year, what is to stop them paying BEPPA's accumulated payments and also reinstating BBI distributions?

Remember they will be saving about 90M a year in interest payments on the corporate debt. Add that to the 200M free cash flow to give them nearly $300M free cash and there is little to no reason why BBI dividends would not recommence.

I know that there has been arguments for and against re BBI dividends being reinstated or not based on multiple variables........but under that scenario they could easily pay around 7c per BBI security ($160M) and still have cash left over.

That would place a lot of pressure on the share price as institutions would likely jump on board again.

Potentialy that could see 50c within months of an announcement about distributions being made.

BEPPA would trade at around 60c under that scenario.

Cheers

eMark