Shine Halves Guidance, page-40

well you've picked 50% off the top of your head - let's actually look at the SHJ downgrade though.

They cut $17.5m off the value of their WIP and disbursements. From their annual accounts, they had ~$182m of current and non-current receivables, disbursements and WIP.

SGH had an equivalent figure of about $1.6bn. If they were to write off a similar proportion as SHJ, that'd be a >$150m writedown that would flow through the p&l.

Now SHJ said their covenants included interest cover ratio and Borrowing to WIP ratio - if SGH have a Borrowing to WIP ratio covenant and were to write off 10% of their WIP, what would that do to the covenant?