Dargie, I share your sentiment on rolling over the SPARCS.
I understand that either the SPARCS are paid out at $1 or rolled into BBI stapled securities in Nov 2009. I did not see an option for rolling over again, but then I have not fully absorbed all the information (It took me a couple of reads of the BEPPA info to understand that).
This will leave the BBI board in a dilemma if the BBI SP is low (< 20 c) for 20 days prior to Nov 17th (??).
I guess that there still is time for asset sales, but for those who thought there was a dilution issue with BEPPA in 2012, we now face a similar dilution (although only $113M verses $700M) with SPARCS in Nov 2009. It's like a catch 22, The SP is unlikely to reach $1 without reinstating divs, but now the BEPPA divs must be cleared first to do this. Without a decent SP the SPARCS will dilute BBI stapled securities (ratio unknown until Nov 2009)
From an optimistic viewpoint, if the BBI SP can reach 50-60c by then, there will only be 150 - 200M more BBI's issued, diluting existing BBI's by < 10%. ie 2.4 B now and 2.6B after Nov 09.
It should also be noted (although not relevant unless admin) that the SPARCS rate equally to BEPPA in terms of creditors.
Certainly is an interesting scenario.
BBI Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
