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BNB - Babcock & Brown

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Dezza said:
Can't believe Centro outlasted them...disappointing for shareholders. When are they coming off suspension (if at all)?
Click to expand...
The banks in general are perhaps now too frightened to turn off the drip to these large comatosed entities for fear that the fire sale of assets by administrator will yield less than asset sales by current management.
 
Re: BNB DEAD !!!

BNB... DEAD

Babcock and Brown warns battered shares worthless Print UPDATE: Cynthia Koons | January 23, 2009


Article from: Dow Jones Newswires
BABCOCK & Brown warned today that, given discussions with its lenders, current market conditions and the fact that it expected to report a negative net asset position, shareholders would be left with nothing under the company's restructuring.

Babcock shares, which have been suspended since January 12, last traded at 32.5 cents, the day after the company, once valued above $8.4 billion, said it had a negative asset position.

"The board believes that in the current market environment and based on continuing discussions with the banking syndicate there will be no value for equity holders under the revised business plan balance sheet restructure,'' the Sydney-based company said today.

http://www.theaustralian.news.com.au/business/story/0,28124,24952440-20501,00.html
 
Re: BNB DEAD !!!

If the restructure with the banks goes ahead the shares will trade again as insolvency will have technically been avoided. They will trade at a very low level however.
 
Would it be a good idea to buy these penny stocks? Hoping one day the share price will trade higher?
 
Re: BNB DEAD !!!


kingbrown said:
BNB... DEAD

Babcock and Brown warns battered shares worthless
Click to expand...

ha ha lol!got news for ya...i put this mutt down ages ago,bunch of thieves.

$8.4b to zero just shows you what a scam this has been.asic what a joke to allow this type of set ups.

directors should be charged with gross incompetence...sentence:bend over to pick up the soap at long bay for 20 years...find out what its like to get screwed...
 
... but they won't

ASIC should be hung at the same time.

The "Corporate Watchdog" is full of dirty fleas
 
what is every1s expected SP for babcock if it reopens on market

are we talking between 5-10c

or under 5c or 1c....



im guessing around 0.06 - 0.09 range??

cant belive the shares were so heavily traded at 40c so close before the suspesnsion

didnt take long to lose the majority
 
joeyjoejoe said:
what is every1s expected SP for babcock if it reopens on market
Click to expand...
Similar to Centro assuming a similar recapitalisation of some of BNB's debt (90% equity for banks, 10% equity for existing shareholders).

This is perhaps the best that can be hoped for given Babcock's recent statements on the current shareholder equity position.
 

I dont see a problem with this. If they, as directors, didnt own shares they would be accused of not being aligned with shareholder interests (which they clearly weren't anyway), and now they do own them they get **** dished out when they recieve the same as every other shareholder.

What are they supposed to do? Dump their shares when they resign, which would flood the market. Then there would be a big story about that...
 

So long as the decision to pay out the capital was not made because of the fact that they were major shareholders. We have all seen how BNB funds serve its masters (be it the headstock or the key personnel) better than its investors.
 
before suspension the floor price seemed around 15 cents, which is market cap of around $50 million. Sure it rose to 40 cents but that was just speculators playing around. 15 cents to 40 cents is a very good dead cat bounce!

if the banks hadn't put the $150 million emergency finance in December the shares would have been worthless.

So prior to suspension at 15 cents, we could say shareholders have $50 million, with the expectation the banks would get back $150 million, a total of $200 million. This is a split of 25 percent shareholders to 75 percent banks. If this changes to a definite 10 percent shareholders to 90 percent banks, then we get 10/25 * 15 cents = 6 cents per share.
 
No it was not speculators playing around at all. The stock price rose from 15c to 40c prior to the suspension because a US hedge fund was buying the stock back that they sold at $24. It's called "short covering". If people mistakenly thought someone was buying the stock because they thought it had a future, then that was a very costly mistake.
BNB has no equity left, whether it be for BNB holders or BNBG holders. The banks will be lucky to get back 50c in the dollar themselves even after an orderly sale of assets according to today's Financial Review.
 
by "speculators" I meant people like me who would be willing to hold the stock for about half an hour maximum during the rare times there was genuine liquidity in the order book.

the 15 cent valuation in the share price is due to the good will value of the intangible assets, like the quality of the BNB staff, who were given a stay of execution to realise greater value from deals still in the pipeline. The company was insolvent if you look at the liquidators valuation of the assets.
 
The market valuation of the shares prior to suspension perhaps only represented the most intangable of intangables, hope.
 
i bought it on the day for 40c.. almost sold it for 44c.

then some how i got tangled in the web and before i could blink it was suspended........ kicking myself. although i only invested a measly 1k


truth be known. i put the order in .. 5 minutes late said that i must be losing my mind.. tried to cancel it .. went through all the cancel screens came back and the trade had allready executed....

you live and learn.........

ive written the 1k off in my head .....so to get back $150. ill be happy

i was hoping to sell for say 60c and walk away with $500
 
At least if they trade again at any price, with any luck those who hold (including my very small parcel) can dump them and at least have a tax loss to claim. If they never come out of the trading halt, we can't even claim the loss. So if they trade its just a small mercy
 

Check out www.delisted.com.au. You can pay them to buy your suspended shares so then you can claim a tax loss.
 
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