Loading up the truck, page-3073

SGH need to present an operating plan and restructure proposal for a number of reasons , including A$876.4 M non cash impairment charge against the value of goodwill , the negative cash flow generated in H1 and lack of guidance provided in H1 results. The goodwill write down obviously caused concern within the banking syndicate as value of asset has been significantly reduced , always upsets bankers. The negative cash flow obviously put in question the ability of SGH to repay debt when due and in fact raises serious concerns about SGH as ongoing concern. Lack of guidance , while only guidance , the banking syndicate needs clarity that the business will not continue to bleed money after 31/12/15. This is the reason the banks called in MGN , and eventually FYI , as they no longer had trust in BOD . If SGH was a complete basket case , as some on here infer, the banking syndicate would not proceed with all these procedures and just called in the loan as is their right. The other factor is the A$21.3M of additional provisioning for debtors and disbursements across the group. This also indicates imo confidence that this is salvageable. We should know in 7 days trading one way or the other.