prospects for bnbg's

Again, the BusinessSpectator says it best ...

"The fact that Michael Larkin and his board and the core of his senior team are still there suggests they think there might be some prospect, even if it is a remote one, of extricating something from the mess".

The BNB thread is all a flutter with gloom and doom.

Problem is that Friday's announcement was a reiteration of what was already stated with the addition comment of the notes having zero or negligible value. (I would point out that the announcement is very badly worded - the notes are not BBIPL notes - they are BNB notes with guarantees from BBIPL).

The banks cannot do anything they like with BBIPL assets.

BNBG holders could, in certain circumstances, suggest that bank actions have compromised the ability of BBIPL to meet it's obligations. The quantum of the damages is clear - $100 face value - the ranking would be determined by a court.

What we are seeing is commercial theatre. Accepting the risks, but suggesting there is a probability that:

- I think BNBG holders will be offered a deal (and possibly even BNB ordinary holders)

- Goldmine Stacks will not present the best deal in the first offer. It will take guts to stare them down and send them back to sharpen the pencil.

I hope the BNB and BNBG holders each have the backbone to:

- back each other; and
- stare down the banker's attack dogs