I spoke to Anthony Maurici this morning after receiving his...

I spoke to Anthony Maurici this morning after receiving his (Snowside) letter. He still intends to continue his fight in court so I must be careful about what I post.

The key points were;
- BLY management may have made a poor decision to support the recap. An alternative would have been a regular CR which would mean much less dilution for share holders. It would seem that the recapitalisation was far too generous concerning PE players and weak BLY management just went along with it.

- Under the previous CEO Richard O'Brien, there were no privatisation plans and there were restrictions intended on how much control Centerbridge or any other equity provider was to have during the first iterations of recapitalisation (i.e. % holdings and board seats). Since his retirement that has not been honoured and is all by the wayside.

- The fact Ares are selling now has driven the SP so low making it a ridiculously cheap TO target. Of course we cannot be certain about such collusion or conspiracies but anyone who knows about life knows that such a thing is almost a routine occurrence in finance. Unethical but routine, GFC style.

- If a TO eventuates from said parties, there is the possibility that said parties could re-list the company as a public one (maybe TSX), 're-invigorated' of course. In this event, said parties would make an absolutely grotesque motza of $$. You could imagine the difference between their TO costs and the money they stand to make from the re-float and any subsequent selling.

BLY is a diabolical example of shareholder value erosion. The whole situation is diabolical. Of course none of the above may happen, Centerbridge may not undertake a TO and BLY may stage a natural recovery, but the situation now and the very relevant history of Centerbridge and Billibong is not a good sign. A TO would be so cheap that even selling BLY's assets and goodwill would likely mean a profit, without them drilling another hole.