negative net asset position, page-18

BNB business still making profit, it's not a lost making business so what is the problem? just right now due to big debt they carry and volatility in the market created the net asset value fall below the level that used to secure those loans (just like a margin call trigger situation) you either pay partial debt back or top up your asset backing to secure the loan. Net asset value does not account for the future earning + grow capacity of the business. Share price is very much link to the future earning + asset value + grow capacity. So a D2E will basicly like a share placement to institutions at discount level to raise the money to pay for the partial debt, and that will clear up the technical loan default situation and that will bring the debt to net asset ratio back to secured level again. Of course this will dilute the share value for now. However wouldn't you like to see BNB bankers involve in owning pieces of the company? BNB Bankers will turn from lender to investor and BNB will have less debt on their book. Now in current market condition less debt is a good thing, if BNB debt reduces then there will be more capacity for the business to grow + future earning will rise when the market recover + net asset value will rise when market recover therefore enhence the share values. Make no mistake the bankers will take equity stake if they see the last two paramaters(future earning, grow capacity) attractive.

Well for me it would be a win-win if BNB and they bankers work out and come up with the arrangement that is fair for both side to get over this situation. The alternative is BNB goes into adminstration and assets go on sale, the bankers will get some coin from a fire sale and book a big lost on their book. I'm sure their share holder won't be very happy to see yet another big lost on their book.

Well that's how I see it.