"and further:"Potential EPS conversion: BBI is less confident...

"and further:

"Potential EPS conversion: BBI is less confident about the feasibility of issuing Equivalent Securities (which would effectively replicate the existing EPS) in order to avoid EPS conversion upon a change of control event with respect to the BNB owned BBI responsible entity. BNB maintaining ownership of the responsible entity through to 2012 (the year of the first reset date under the EPS) is expected to prevent this event occurring under the EPS terms. However, there is the possibility that the BNB liquidator may sell the responsible entity out of the BNB group, triggering such an event. The possibility of massive dilution from conversion of the EPS into ordinary BBI units has certainly increased with the liquidation of BNB."

To my eyes, the easiest way out of this scenario is for BBI to buy the responsible entity BBIS from BNB.

The board members of BBI and BBIS are essentially the same people with the same interests etc etc even though BBIS is owned by another branch of the Babcock Group, (albeit in administration limping along) and so is technically independent to the ever so slightest of degrees.

Until the management is internalised the change of control event still exists. They are in the process of obtaining approval from the major lenders to internalise this charade of arms length management. The core will be what price the lenders charge for this approval.

ifandwhen