bnbg - looking to the future..., page-20

Hi Towie,

I don't think the situation is actually vastly different from the current arrangement. Essentially, the banks $2 billion debt will be transferred from a $2 billion loan to lets say 20 000 000 perpetual notes with a face value of $100. There will be interest payable on the notes until such time that BNB can pay back the face value of notes. Presumably the notes are structured so that if BNB can't make an interest payment then this is tacked onto the face value for compounding. So in essence it will give BNB some breathing space and hopefully some flexibility in making its repayments as it sells off assets.

So the "dollar value in front of the ordinary shareholder" is just the original debt, nothing too sinister. How bastardly the banks decide to be to BNB will be reflected in the interest rate that they decide to charge on the new notes.

Cheers,
StatsMan