On a Winding Up of Babcock & Brown, the Guarantee can be called upon to meet any shortfall in amounts due under BBSN although the Winding Up of Babcock & Brown:
may result in action taken in respect of BBIPL which would
mean that no payment may be made under the Guarantee until all creditors of BBIPL which rank ahead of Holders are paid in full; and
is an event of default under the agreement with the lenders under the Corporate Facility and no payment may be made under the Guarantee until such senior lenders are paid in full.
The key point is "may result in action taken in respect of BBIPL which would mean that no payment may be make under the Guarantee until all creditors of BBIPL which rank ahead of Holders are paid in full".
BNB is wound up and BBIPL takes action to forestall payment under the guarantee.
At this stage BBSN debtors must engage in legal action to prove "damages". We will not be inline to receive payment.
However the Bankers have been in collusion with management to oppress the interests of the BBSN debt holder. The case will need to be put - sue for damages and have a court elevate the damages above the bankers ill gotten gains.
BNB
babcock & brown limited
