sell assets v unlock equity(recapitalise)?, page-9

"So ... all the debt holders are lined up in strict order of seniority. The most senior will not see a cent paid out to a more junior debt holder."

This statement wraps it up in one. Why people cannot grasp this reality is beyond me. Corporate debt holders will not budge an inch and SPARCS holders would not accept amendments to their terms. BEPPA holders are bringing up the rear and (using Melua's term) there are two chances of seeing any interest any time soon - Buckley's and none.

There is no way SPARCS in November are going to be paid out in cash unless there are some very significant asset sales (ie not just DBCT, unless they get a whopping $3B for it which is unlikely) before Nov 2009.

Or the other option would be a BEPPA restructuring accompanied by a signifcant capital raising on the ords, on top of the DBCT sale (partial or otherwise).

Not until BBI clears its corporate debt will the company be able to recover, and then it will have to deal with its BEPPA problem as well if it wishes to go forward. The BEPPA's are crippling the company.