chart chat, page-27

Vik123,

The absolute quantum of debt is not relevant - the relevancy here is does their cashflow support this level of debt. Do your own research, but everything I have seen to date suggests that the debt figure, although high (and certainly higher than what the current market environment prefers), it quite OK relative to the assets and cashflows of BBP.

The more particular issue is generating the cashflow to repay BNB - from a mix of generated free cashflow and asset sales. There is no way that BNB (read "the Banks") will entertain an extension of this debt, so BBP MUST be in a position to repay this debt by the end of this year.

With the balance of the debt, there are still a few years before the first tranche becomes due and BBP has time to build a cash buffer to part amortise this debt and renegotiate the balance in an almost certainly more positive environment than we are seeing just at the moment.

Also, their cashflows are forecast to increase over the next few years which obviously aids any debt renegotiation.

All of the above assumes that they do not sell all of their assets in one line. And given the above, they are not necessarily obliged to go that route UNLESS the directors feel they have received a fair offer.