In my opinion a rights issue is not on but a BEPPA restructure is. Once DBCT is sold and corporate debt minimal, there is no requirement for a capital raising.
What's holding back the BBI price? Lack of significant asset sales and dilution fears. Once DBCT sells, things change.
The market is telling you a BEPPA restructure is on the cards.
There has to be some dilution via BEPPA. How much is the big question? The company would rather deal with the problem in the next six months than wait until 2012.
Yes, it (BEPPA) is cheap debt for BBI but if they restructure with smaller dilution (relatively speaking), then it's a win win for BBI and BEPPA.
BEPPA holders will have to take a short term haircut. That's my opinion.... but if the restructure package involves cash plus BBI securities, long term the $1 plus interest that BEPPA holders are owed will be more than covered by the new package IF people are willing to hold long term.
My opinion only.
beppa restructure??
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