What's the use in having "positive equity" on paper if your current liabilities exceed your current assets by $426.5M because you can be assured, in a liquidation, your positive NTA will be wiped out quicker than jack flash.
People need to see the situation for what it is. All this talk I read on forums of the "stock rallying to 20c, 30c" is just pure fantasy/hope without factual basis. The harsh reality is the situation is very, very bleak. There is nothing to look forward to if you are an equity holder because in my opinion the equity is worthless (in reality, rather than on paper in a perfect world). Any new equity will be in favour of the new investor, not existing holders.
If BBI go into VA, do you honestly give them a realistic chance of trading their way back to prosperity? If the publishers at Collins want a new meaning for the word "denial", they need look no further than the BBI threads on stock forums. I call it as I see it.
In November 2008, the NTA was $1.00+, the stock price was 3c, there was no imminent threat of devastating dilution and time was on their side regarding asset sales, especially DBCT.
All that has changed and yet the stock price is now 70% higher than in Nov 2008. When the fundamentals change, investors need to be swift and protect their capital.
I currently hold nil BBI and nil BEPPA. I might be prepared to participate in a cap raising at a rock bottom post dilution price. We just need to see what the board decides on.
The Board has two choices:
Massive dilution or administration.
By going with BAM, they act in the best interests of securityholders. Painful, but it ensures survival. BBI directors may just have to swallow the poison pill and let BBI holders wear the pain.