market cap and nav, page-92

VLV

SPARCS holders already refused a rollover amendment in May. And it was on pretty generous terms as well. They are unlikely to be able to offer more, so this simply will not happen again. They will convert and clear off. The best BBI can do is announce some good news before the VWAP 20 day period begins and boost the price to limit the dilution.

The BEPPA holders - well what is there to rollover? They do not mature until 2012, although as Enumerate pointed out yesterday after 10 qtrs of no interest they become problematic to the company. No rollover offer will be made AS THERE IS NOTHING TO ROLLOVER. They are completely blocked out by the corporate debtholders in any case.

It is only a matter of time before the attempt to restructure these prefs, depending on the outcome of the DBCT sale and what happens there. I think 2:1 ords for prefs will all it will be and a while back melua suggested 4:1 ords for prefs. I guess it will be somewhere in that overall range.

If pref holders cannot realise by now that it will be either restructure or administration, then if they blocked it their holdings become wallpaper. It depends on how intelligently you view the situation. Market at 15 cents is sending a pretty big signal on this however not everyone can work it out yet. Still, you would want a reasonable offer.

One thing is for sure - the company absolutely cannot afford to service them, and furthermore the sweep will stop them from being serviced anyway.

"My logic tells me that should holders agree to roll over again with additional interest, by the time came to pay them out the economy would be well and truly in a recovery."

VLV - that statement is pure fantasy. Simply the payment of the accrued interest would cripple the company.