bondholder buyout: speculation on businessspec, page-6

They made a big mistake by putting such a derisory offer to bondholders. All it did was annoy people and now they are faced with the prospect of someone sneaking into the laundry and going through the dirty linen.

I get the feeling they thought the offer they made would get voted in, but NZ bondholders (who do not have tax losses to claim as there is no CGT in NZ) voted 49M to 43M to put BNB under. I do recall reading they had enough votes in Australia to get it through, but alas the kiwis aren't as soft as the Aussies and can smell out a con (having already been conned).

I think the banks know this is a problem. They have to weigh up the risk of letting the administrators in through the back door or trying another offer. I would not look at anything less than 10 cents on the dollar.