The rest of the corporate debt could easily be wiped out by another one or two asset sales and if you choose to believe the rumours they are already in advanced talks with two parties.
The risk is that an acceptable offer is not received and ordinary cash flows are unable to cover the repayments. We could expect to see a reduction in transport traffic (very much doubt it would be quite 20% as mentioned above) and as such, lower revenue.
Essentially it just comes down to the fact they have quality assets with market value significantly above book value, but the question is whether or not they're able to sell them satisfactorily. Comes down to the invidiual what you believe will happen and how much risk you're willing to take, but the rewards are great.
BBI Price at posting:
5.3¢ Sentiment: LT Buy Disclosure: Held
