But I think the debt cover in event of liquidation is not the main game as the current asset values (particularly intangibles) will deteriorate very very quickly once administration occurs as any buyer knows it will be a fire sale.
The bigger issue is BBGs ability to fund its ongoing operating costs and whether it has sufficient cash to continue to do so- because the share price is now much too low for a realistic rights issue. Therefore the cash will have to come from continued senior lender support until some form of refinancing occurs or trading conditions rapidly improve.
Some lenders may not wish to run the risk of refinancing falling through and having to extend further debt to avoid administration...and therefore prefer to take the hit now rather than throw 'good money after bad' (figure of speech, not my opinion) otherwise the size of their exposure is increased along with the risk of loss.
BBG Price at posting:
13.3¢ Sentiment: None Disclosure: Not Held
