how long will bsl go?, page-35

A few points worth considering -

1. BSL has a syndicated loan with big 4 banks of $1.35B
2. $600M of this due in 2013
3. The balance due 2015
4. HRC price futures down at least until Dec 2011
5. $A stable at around $1.03 but may also rise.

If BSL is loosing money under the current conditions how will they pay the interest on the loan? How will they pay off the capital amount? Maybe a capital raising, but with such volatile conditions ahead who would risk it and at what price would be attractive to invest, 50c? They can sell-off assets but this would surely be a sign that the end is nigh!

Just about every indicator suggests this business is heading into bankruptcy. Who forced the $900M writedown? Institutions or the banks? Maybe OST, but even a merger at this point may not save BSL. Takeover? who would?