BNBG and BNB010 noteholders are the new, effective, owners of Babcock & Brown Limited (BBL).
If you believe that the BBL shareholders have had $2B+ wiped out because of "bad luck" - then, maybe, you will be grateful to accept 10cents per dollar face for you notes.
If you believe that hubris, deceit and maybe even outright fraud are "on the books" ... then the power of the noteholders becomes fully evident.
Only the noteholders will vote on the extent to which BBL and BBIPL are investigated. The noteholders control the voluntary administration process AND will control the liquidation process.
The Banking Consortium has one chance to do a deal with the noteholders. Due to their derisory, miserable offers and failure to restructure the equity of BBL - they are facing an organised noteholder group fully aware of the damage they can cause the banks and fully aware of increasing strength of their position to deal this damage.
If you know you can:
- starve the Banking Consortium of $billions in interest payments
- impair existing loans worth tens of $billions by a measurable amount
- cause reputation loss to individual banks that would take decades to repair
Why would you be willing to settle face+interest for a fraction of a dollar?
BNB
babcock & brown limited
