offer banks 0.1c in the dollar, page-7

Have a look below and see why:

Why did the company do a deal with the banks, even if it is at 20% p.a. instead of going into VA? (Possibly so the management can line their own pockets over the next couple of years???)

Because the banks are secured and they believe they can generate a form of return over the longer period whilst severely hamstringing the company. It's a leash if you like. Ordinarily, banks could take over the business of a company against which they are secured but who would want to in an environment like this? It's that simple - a quasi control play.


Why is the management sympathetic to the banks but not the noteholders?

Because the banks are primary lenders and secured. The noteholders are not. They are subordinated debt holders which are barely ranked above shareholders. You deal with the primary lenders first.


Is there any real reason for BNB to basically take the line of action that they have?

Only to satisfy banking covenants and keep the company ticking over to satisfy those covenants. Directors can end up being liable in certain situations and my guess would be that there may be a glimmer of hope of rescuing some form of value.


Why are BNB management making noteholders vote on this deal prior to a half yearly report, or independant evaluation being carried out?

I doubt there is anything sinister here. They are being driven by other deadlines. What would an independent valuation reveal?


I don't really have a problem with losing my cash, however, I think the banks and management should go down with me instead of significantly benefitting at the expense of me going down, which is ethically and morally wrong (even if this appears to be a more regular occurence in the stock markets around the world nowadays)

Like I said above, banks should NOT go down with equity holders. Banks utilise forms of capital to enter deals like these. Typically that capital will effectively place at risk banks' liquidity and deposit base. Why, as a bank, would you expect anything less than full repayment of a loan?? It puts at risk your balance sheet, your ability to lend, your ability to honour your deposit base etc etc etc. That is why banks do what they do. Those that haven't....have you looked in the press lately??!!