"6.1.6 Subordination BBSN are subordinated in right of any payments to the claims of any creditors of Babcock & Brown from time to time other than claims which, by their terms, rank equally with, or after, the claims of Holders.
If Babcock & Brown is Wound Up, Holders will only have the right to receive a return of their investment after all secured and unsecured creditors who rank higher than BBSN have been paid in full.
In the event of a shortfall of funds on a Winding Up, there is a risk that Holders will not receive a full return of Face Value or any Outstanding Interest."
imo the issue is, are the banks creditors of bnb? from my understanding reading last year's annual report is that the noteholders are the only creditors. the corporate debt facility is a debt of bbipl and not bnb.
if i am right, assuming that bnb still has some assets on its balance sheet and the banks aren't entitled to them, we would be entitled to get first dibs.
BNB Price at posting:
0.0¢ Sentiment: None Disclosure: Held
