The new owners of BNB are the ex-BBSN noteholders.The new "board...

The new owners of BNB are the ex-BBSN noteholders.

The new "board of directors" are the Deloitte administrators.

In effect, the asset backing of each noteholder dollar is a share of BBIPL and debt owed by BBIPL to the noteholder under the BBIPL guarantee.

We were told BBIPL shares were worthless - so the new noteholder owners of BBIPL effectively have 99.9% of the company and debt to the full value of the note face value + accrued interest.

This is the new reality.

The question is: "What are the new owners going to do with their poorly structured and poorly performing asset?"

Clearly:

- The presently agreed bank restructuring plan cannot be allowed to stand. Standing behind $2.2B with fees at 20%pa is clearly not in the new owners interests.

- The simple question will be put to the Banking Consortium: "Can we agree a capital restructure, acceptable to all parties - or do the new owners simply tip everything over into administration?"

Tony Boyd, over at the BusinessSpectator.com, has stumbled. He seems to think the banks are in control and will have their restructuring enacted. HE IS COMPLETELY WRONG ON THIS POINT.

The key point to note is that momentum has passed to the new owners of BNB. If these new owners act in a coherent way, as the NZ noteholders demonstrated they can, then the Banking Consortium will need to return to the negotiation table - with freshly sharpened pencils.