Bryan Frith wrote in The Australian today:
"Not the least of B&B's problems is what to do with BBI. The fund has great assets but is massively overgeared. It's look through debt is about $11.7 billion: $7 billion on its balance sheet and $4.7 billion off balance sheet, but it now has a market capitalisation of only $112 million, with the price of its securities down from a high of $1.95 last year to only 4.7c...."
Now forgive me as I do not know this Mr Frith, but
1. What off balance sheet debt is he talking about? Is he referring to non-recourse debt at the asset level? I have no idea what he is on about?
2. Look at the first line in his statement: "Not the least of B&B's problems is what to do with BBI".
Forgive me again Mr Frith, but when did BNB have any say in how BBI is run? They might own 10% of the stock, but they have no Board representation, no inter company loans with BBI and therefore no recourse to any of BBI's assets.
You have to wonder about these journalists.
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