the buying continues, page-51

Unlike BBI ords, Beppa once coverted will hold the vote in terms of allowing a CSI. Beppa and Sparcs at a point in time will own 90% of the equity.

At 9 cents a unit the Beppa holders have little to lose to hold out.

The secured lenders have a lot more to lose than Beppa. According the current share price, Beppa has already lost 90%. My guess is that the lenders have not written down their debt exposures and they know a VA will cost them dearly. The reality is that the Secured lenders are in exactly the same boat as Beppa. If this company locks up the asset lenders will each enforce on their individual securities and their mission will be to sell the assets at a valuation sufficient to repay their asset level debt.

The asset lenders will not care about surplus funds to the corporate lenders they will understake a sale to merely repay their debt. Corporate lenders will suffer heavy losses.

The corporate lenders cannot afford for this machine to stop.

Beppa through its vote can stop the game by blocking the CSI deal.

So one way or another this deal is worth more than 9 cents per Beppa unit. Everyone has too much to lose and the only thing Beppa wants is an acceptable way forward.

Usual disclaimers