Thank you for your time and input and advice on this.
I am sure that the ranking of Beppa below senior debt and above ordinary equity is known by most beppa holders and is factored in. The remaining asset value after senior debt had taken their due if the wazzoo option was used has been discussed here previously and used as a mock up valuation for Beppa, and also noted that BBI ordinaries would be worthless in the wazzoo and Beppa only slightly above that. (maybe just a stain on the paper)
The stamina and lust of this company to stay afloat is one of the amazing parts of this story, although it is sometimes difficult to keep faith in them and their methods.
I think we all pretty well agree that there is a tightrope rope in place until the major debts due in the next 6 - 8 months are dealt with, then some stability should return to the business.
As far as a restructure of the business goes, although it appears to be necessary on paper for a positive outcome for everyone by 2012, I still have high doubts that it will eventuate without being forced by a regulator/major for instance.
The rumblings amongst the major holders are our only clue that some change could occur, and they are in best position to research and initiate it and no doubt they are also in the position of having to take a huge loss if the final NAV equates below their requirements/expectations. As most of those holdings would be long term, a 2012 solution seems a bit short term in comparison to the lifespan of the assets and income requirements of the major holders.
Nevertheless something needs to be done so these schemes can never be compared in hindsight with a ponzi scheme ever again. I wish you every success with chasing after the BNB banker consortium liability.
I would not be surprised if the banker consortium are also major equity holders in BBI as a way of mitigating their returns and as such they are in an effective position to manipulate the underlying value to their advantage in the SP.
just my two flat rocks and piece of string worth..
ifandwhen
BBI Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
