From the analyst at ABN who said SELL at 19c (and he was right in hindsight):
"Our primary cause for concern is associated with BBI's ability to fund its near-term debt and option payment obligations. The proceeds from the Powerco sell down are not due until March 2009, a short term bridging facility may resolve its near-term funding problem. However, there are an increasing number of reports of other funds, internationally, suspending distributions due to the inability to obtain funding or re-financing.
If BBI can meet its near-term funding obligations and debt markets 'unfreeze' then the gap between BBI's equity value and underlying asset value may close."
I ask "what other funds internationally cannot obtain funding or re-financing" and "what is the quality of their assets?"
BBI Price at posting:
3.4¢ Sentiment: LT Buy Disclosure: Held
