bnb will survive, page-34

I reckon that this recent announcement is the continuation of the softening up process that started with the negative equity announcement.

We know that if you "mark to market" significant assets - that the valuations you apply, today, will be very low. This is the basis of the negative equity announcement.

The difference between BNB equity and the Banking syndicate loans is a very thin tranche of subordinated debt. Hence the implication for subordinated debt holders is that, in receivership, we could expect significant (total) loss.

But this is NOT how the game is being played. The banks want to prevent receivership (loan asset impairment, risk factors, control by a third party).

The banks HAVE NO RIGHT to dictate any terms to the BNB ordinary holders or to the subordinated debt holders - while those holders are prepared to go to the brink to receivership.

This latest announcement is a piece of theater. It adds no new information. However, it clearly signals that the board and management are not fully behind shareholder/subordinated debt holder interest in the conduct of these negotiations.

This is the worrying part of the announcement. The timing of the trading halt can now be seen as part of this strategy of lowering equity holder expectations - shutdown trading shortly after some confidence returns to the shareprice.

Holders need to mobilise. Expect some dog and pony show inviting holders to accept massive dilution/losses in return for the banks taking the show private and dividing up the assets.

I would rather press the receivership/liquidation button. I can just imagine the merry hell of law suits questioning the ranking of the various priorities of debt.