bnb news shows the danger in these situations, page-13

Fantastic response Dargie.

Below is the SMH link to summary of the BNB situation:

http://business.smh.com.au/business/red-ink-threatens-bampbs-survival-20090107-7bz7.html

Reading the announcement last night summarised what I have seen as this risk in owning BBI. As I have stated on this thread a number of times....it is not what we do know, (which seems to be what everyone is focusing on here) but it is what we do not yet know, which highlights the risk here.

We have very little evidence of asset values matching or exceeding book values. Every single day I am reading ASX announcements of asset sales made to reduce debt, and each and every single time, they are falling short of their recently market down values assigned my management in the last few months.

BBI has reported sale values on only some of their select assets.....the balance of their stable is where the risk lies for holders....and nobody yet knows if their is demand for those assets that exceed book value.

A year ago, you had so many buyers competing for these assets, today most have either shut down shop, or been stalled by lack of debt funding....and for this reason the values are massively impared.

I personally think this is a reality check for BBI, and will realign the price of the securities today back to where the risk here is.

My thoughts only. Good luck to holders.

Kiril