Dargie, I suspect you are right. I don't believe this is one...

Dargie, I suspect you are right. I don't believe this is one great big conspiracy to screw the retail investors, even though that may be the outcome. There may be a solution in the works that is not as bad as some pepole think.

Perhaps the CSI is most interested in getting hold of one of BBI's assets at a bargain price than taking control of BBI. Perhaps they buy an asset off BBI (at below book value as intimated in the ann - say its PD Ports) and as part of that deal they also inject capital into BBI and walk away with both an asset purchased at a bargain price plus a chunk of BBI. They get the asset they want at a firesale price without having to bid against others at a firesale auction. As part of the deal there's a restructure, with BEPPA and SPARCS holders receiving BBI shares and the death spiral is removed. BBI can then do a cap later raising to eliminate more debt, if required....with the death spiral gone and the threat of admin gone BBI can trade on and value of the ords should see some appreciation as the GFC ends, and the appeal of a cap raising increases.

I've done a bit of work on how such a deal might look and while BEPPA, SPARCS and BBI all get screwed, its not the doomsday result some are certain is going to eventuate. Having said that, we won't know till we see the deal and maybe it is all over red rover.