euroports conditions precedent, page-3

Hi Melua,

like B00f says in the next post, we don't know what the CP's are. It won't be the EU as they passed the transaction.

There are a broad range of issues I believe.

The Euroports deal was mainly an equity injection deal with around $35m Euros coming back to BBI. The injection was to pay out minority holders in some assets and pay down debt.

Maybe some issues have arisen with the minority holders and the exercise of their put option. More likely, it will be the purchaser's seeking a price reduction or larger share (eg PowerCo) due to worsening conditions in Europe. We will have to wait and see.

I think BBI will need to get this deal through, as minority holders, to my reading, have exercised their put option and raising additional debt to buy them out is virtually impossible.

If the purchasers of the equity want too much, maybe BBI can delay the payment under the put option to minority holders. The one saving grace, is that it would be quite silly of minority holders to try and force the issue. I say this, because it would be unlikely that they would get the price they are to get under the put option (negoitiated in better times) then they would today by forcing a fire sale.

What makes it more difficult, is that assets of Euroports have different minority holders of different assets. What their actual recourse rights are is an unknown. The wealth of variables and the little information us punters have makes it difficult to ascertain the true ramifications. I am happy to trust the management at this time.

As with all issues BBI, it is a wait and see situation.

Cheers