>actually the noteholders can already furnish an exit notice as...

>actually the noteholders can already furnish an exit notice as the shares have been suspended for 20 consecutive days. The problem it seems it that the assets are in BBIPL which guarantees the notes but the notes themselves (and the shares) are issued by Babcock and Brown Limited.

This is not a problem.

BNBG holders can demand repayment or exchange. If BNB cannot meet the request ... it can be put into administration.

If BNB is in administration, then the BNBG subordinated guarantee from BBIPL kicks in. BBIPL then, directly, has a subordinated debt to the amount that was owed by BNB.

BBIPL then goes into administration.

The creditors meeting would be very interesting. You would have a vast number of retail BNBG debt holders and 20 major banks.

The fight over who appoints the Receiver would be critical.

Further fact is that there are two subordinated group holders - the BNBG and BNB010 holders. Either group can "pull the pin".

I am exploring the tactical advantages of which group should file the administration order.