"In relation to the death spiral if it truly takes hold - those...

"In relation to the death spiral if it truly takes hold - those securities in its path will be destroyed, the last to convert will own the company."

Well the death spiral has already taken hold, but yes it could get worse and like a hurricane, anything in its path will be indeed destroyed.

"After the last conversion (ie. BEPPA, and yes even its massive like 11 billion shares or whatever) and provided that BBI is still alive (like the proverbial Lazarous with a triple bypass), the elephant will have left the room, the dust will settle, and the market should price BBI more rationally. This final conversion should happen just following the DBCT sale. Management can either do this the friendly way or the hostile way."

Mgmt need to avoid at all costs just allowing the BEPPA to fully convert at the current share price. They would be welcoming in the death spiral with open arms.

The market has these prefs at 15 cents or so. The company would be stupid/reckless just to grant full conversion. They would be better off to have a crack at a restructuring as we have debated.

And bear in mind, if they want to raise capital, the prefs will have to be removed out of the way first. No-one at all will subscribe to an issue where the money all goes to the pref holders.


DBCT is indeed a gem of an asset. You are right on there. The question will be will someone be encouraged to put new money in to rescue the company and take on the other assets they have as well which are not doing so well. If DBCT did not sell, would need to come up with $1-1.5B to acheive a rescue, but I think a 49% sale of DBCT is more the go and $1B raising with a prefs restructure alongside.

The pref holders will NEVER EVER see any cash out of BBI. They are going to have to convert to equity to see any of their money back. That is a rerality that not everyone is prepared to accept yet, although the major pref holders will do so in a heartbeat if any half decent offer is made.