interesting clause in beppa constitution

I have just scoured through the newly amended BEPPA constitution that came out Friday night around 6:30, and have found a quirky clause that may deem any BEPPA to BBI conversion at current prices null and void.

According to section 5.7 of the BBI EPS Limited: Terms of Exchangeable Preference Shares

5.7 No Conversion while a Market Disruption Event Subsists

Subject to clause 5.9, if the company is required by these Terms to effect an Exchange of EPS and a Market Disruption Event Subsists:

(a) the Issuer must not effect the Exchange by way of Conversion; and

(b) the Issuer must effect the Exchange by way of Resale or Redemption

And according to the Constitutions definition, a Market Disruption can be defined as:

(d) a change or disruption in Australian or international political or economic conditions or financial markets that is reasonably likely to prejudice materially the success of the issuance of Stapled Securities.

i.e. such as a global financial crisis!

I do believe clause 5.7 allows the halt or in the very least a redemption rather than conversion of BEPPA to BBI in the case of a change in the Responsible entity.

However, I still believe that the ADMINISTRATION of BNB still does not in anyway enact a conversion of BEPPA to BBI anyway. However, in light of this underlooked clause, even if those out there who believe that this event does enact such a conversion, it would be unlikely to take place in any event anyway.

If someone wants to pass this on to the Australian, be my guest!