Splufty: [adj] spluf'ty
* Of or pertaining to spluft.
* Very interesting; stylish; well-done; beautiful; heartfelt; admirable; copacetic.
* Extension of 'cool', implying featureful coolness
* A word we could all stand to use more often.
My main observation is that there are some BNB assets and business activities that are solid and reliable.
However, there are parts that are best disposed of.
I am assuming that the June Interim reveals the basic structure of what is to come. Assuming the debt to equity deal is still on the cards - recapitalising BNB by converting the corporate debt (or at least a major part of that debt) to equity will produce, in the medium term, a viable business.
Take a look at the June Interim ... review the balance sheet with a potential debt to equity transformation, write off the property and structured equity units ... lots of red ink ... but what remains looks viable. If you do a debt to equity swap to shore up the balance sheet, it looks like BNB could dig it's way out of the hole.
I'd suggest all this is purely academic ... we will find out the nature of the deal, when we find out the nature of the deal and we are in trading halt until then. However, I'd suggest that if it is clear that a viable business could remain, with a bit of structural help from the banks; with more detailed information and more detailed insight the situation could be much better (we have had a further 6 months of probably profitable infrastructure project activity, for example).
BNB
babcock & brown limited
