Mr Corporate Bank together with every other lender in the world wants his money back despite there being little risk to him being paid his interest and slowly amortised. He can try and force a sale of the assets but that would immediately stop his cash flow. He raves and rants but everyone knows he is full of bluff. However he rattles management with noise who has to consider their alternatives.
Mr CI loves the assets and cash flow certainty. Trophy assets hard to replicate. Can see the opportunity because of raving and ranting of Mr Corporate Bank. But feels like there are lots of other opportunities so needs a little incentive. Feeling proud they have locked up the opportunity and can see the potential to make a huge windfall on this deal against very low risk assets. Given the heavy dilution proposed on the equity raising, Mr CI concludes that he is getting a ripper deal. Mr CI says lets shoot Beppa or we will walk?
Mr Beppa says dont use me as the incentive payment as I am happy with my position and I dont believe that Mr Corporate Bank is going to do anything stupid as pushing the company into receivership is only going to be certain death for Mr Corporate Bank. Mr Beppa says that he has lots of money and wants to be part of the recap. Mr Beppa says at 9 cents a unit I really have little to lose so make sure you look after me in the recap or I will push this truck over the edge.
Who is least bluffing?
BBI Price at posting:
5.4¢ Sentiment: None Disclosure: Held
