22 november 2010, page-2

Thanks PWU for the concensus that things are due to happen sooner rather than later.
nice to see the management hasn't done the documentation consolidating the stapled security debt into equity.that means that each share has a stapled security that was origionally worth a $1 i think.Now that mostly was lent to alinta (BB POWeR) to cover losses until Alinta would became profitable, when they would be repayed without being taxable to the lender/shareholder.Some of this lending was documented and some wasn't.If there's a takeover/buyin in the offing then us shareholders/stapled security holders still have loans outstanding to alinta to be accounted for.
This was instrumental in forcing BBI to take a discount.Naturally if someone wants to buy in,its not just shares we throw into the pot with their money but debt owed to us by alinta.Good shareholder protection by the new management.Hats off to them all the way so far.
The way i pick the balance is Alinta owes roughly what the plant is worth give or take $200m,maybe more.Then there's the value of the integrated business,which has an undetermined value.The banks have security over most of that plant and won't really push as they may loose equity on their loans.Alinta is still creating cash to pay down debt if no taxable profit.Shareholders have the advantage of being owed money as well as being shareholders,so any takeover/buyout has to take that into account and that is around $700 million.
Definitely agree value buying here and once those contracts roll off expect revaluation of energy markets up the $170m they have written them down by and that'll go straight to shareholder equity.
Its just a pity they never dropped to 2 cents it really would have been pigs trough time for me.