really good news

The announced sale of Kwinana and Neerabup for net $130m is good news. So this was an important step in the rebuilding process. i missed the announcement as I was travelling at the time, but hopefully the BBP share price will reflect this tomorrow.

Seems to be some confusion by some posters on this. The loan being repaid is not money owed to BNB, but rather to banks. Thus BNB don't receive this, and BBP does save interest being charged, but also loses the earnings that Kwinana has started to produce. There is a far greater slab of construction debt that will no longer need to be refinanced or taken onto the BBP balance sheet. The letter of credit with BNB must be some form of guarantee that BNB had put in place for the construction debt, but it will not provide BNB any cash, but may remove a contingent liability for them.

Bit disappointed they did not tell us if the assets were sold for better than book value, I think they were but will seek to find out. Also interested to know the breakdown of costs between their gross $130m and the net $86m.

So we are down to the BBPF $2.7 b facility (remember this is not all fully drawn cash advance but also uincludes $200m of guarantee and the like)

Also very positive comments re the strategic transaction, but why is is taking them so long to send flyers out, I would have thought that these would have gone out weeks ago.

So cashflow strong, they are continuing to comply with their banking covenants, and their next debt repayment date is not until Sept 09 1st BNB instalment.

Anyway this is positive, let's see what the New Year brings in terms of the strategic transaction. Far from out of the woods but this is great news for holders.