sparcs in nz like beppa , page-5

ejd

We are in an "assume the worst" market right now (surely there is no-one out there who will disagree with that, but you never know). So that is exactly what the market is doing right now with BBI and its related securities and bonds. If those SPARCS bonds are currently trading between 20-30 cents, that is not the best of signals.

And you can bet your very last dollar that dividends will not be reinstated on the ordinary shares in 2009, and unless there is some dramatic turnaround, not in 2010 either. I think most rational posters are starting to comprehend this now.

However, even in this brutal market, November is still a reasonable way off to make some decent sized asset sales, but I would think BBI needs to make some serious inroads into its corporate debt facilities before the banks would let them divert money to repay bonds. They may even try to roll the bonds over, but the offer would need to be very very generous indeed.

Still, there is time for asset sales, but they would need to be reasonably substantial to give the mgmt a chance to address all the upcoming debt and bond issues the company will be forced to address.

I cannot see why you would want to risk it on the ordinary shares when you could pick up these bonds at 30 cents on the dollar. If the company is going as well as some posters think, then surely by the end of November you will get $1 back and interest on the money up until then?