nathan's bbi restructure., page-12

the thing is i agree with you, but you read only what you want too see?

what i disagree with is BBs proposal that sees Beppa getting 5x BBI shares. that to me puts a cornerstone investor at a great disadvantage, so much so that my propasal of zero conversion rates higher.

Ofcourse if a middle ground is reach, ie 3x BBi then that is the best case scenario, but that requires a beppa vote, anything under $1 requires a vote. personally i would sell at 30c tomorow if beppa had a spkie, and i would accept the same from BBi in shares. but others are stubborn, it may not pass votes. the top 20 isnt anywhere near influential enough to force a vote through.

"AIN'T NOBODY GOING TO PUT MONEY INTO BBI WITH $700m OF CONVERTIBLES HANGING OVER THEM. NOBODY"

3years away is hardly hanging over them is it? if they continue to trade at this discount and BBI are corporate debt free, i would suspect asset level will be paid down at minimal rate and BEPPA will be bought back on market as much as cash flow allows.

Ask yourself this: Why would a cornerstone investor let BBI convert at 5x, even 3x, then buy into a capital raising $500mil-$1bil(your figures of what you think is needed).

Wouldnt the cornerstone investor make more money from buying as many beppa as possible on open market? Push the price up sure, and the volumes will dry up, even make some approaches to top20 holders at say 30c each and see if theres a nibble?

surely that is the best play for a corner stone investor. buy $200mil face vlue beppa at avg 40c, cost to them $80mil. then convert them at 5x200mil is 1bil shares.

why would they buy 1bil shares at 20c is $200mil, if they can get same result for $80mil?