This is true ... because the BEPPA situation is WORSE than the BNBG position.
The single realisation that has shocked me, concerning BNBG rights, is the degree to which BNBG holders have NO RIGHTS to pursue recovery of their interest or capital.
This fact is true of the BEPPA prefs ... the shocking truth is a complete departure from what impression is made in the prospectus. The BEPPA are worse because the company can force repayment in terms of BBI stapled. BNBG holders may be subordinated out the wazzoo ... but at least they can never be forced to take worthless stock (BBI stapled) as payment.
It is quite clear that senior debt holders are not feeling completely comfortable - I would wager that syndicated BBI debt is trading at a significant discount. It remains to be seen if the recourse debt can be cleared, at which point some kind of gentlemanly "refinancing" can occur.
However, if the banks turn nasty ... the situation playing out for BNBG Noteholders will replay with the BEPPA prefs.
BBI Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
