Once corporate debt is nil, there is actually no logical reason...

Once corporate debt is nil, there is actually no logical reason for BEPPA to be trading at less than 60c. Dysfunctional market pricing would be an illogical reason for a price less than 60c. The reason BEPPA trades at 7c is because the BEPPA market is illiquid and dysfunctional right now with some big forced sellers and the market also believes BBI is history and therefore the market believes BEPPA is also history even though there is a $2.4 Bn buffer in equity right now.

BEPPA has a face value of $1 and I would apply a 40% discount to face value given that the interest rate payable is so low (115 points above the 90 day Bank Bill rate). Therefore, a 40% discount to face value is reasonable IF corporate debt is paid off. BEPPA is an all or nothing situation. If BBI survives, BEPPA is worth $1 in 2012 in some form, whether it be cash, BBI shares or a combination of both.
If BBI doesn't survive, BEPPA in all probability is worth zero.