Even if there's no legal obligation to announce an agreement, that information is still price sensitive. For example: me- it's what I'm waiting for to reinvest.
Morrie Bs would have a field day if the BOD kept this secret. (Not that Morrie Bs CA is going anywhere due to a conflict of interest just by the way.)
And your second question- does anyone believe the banks will take a haircut? The SMH story today believes it.
I know it sounds too good to be true. Mel and others don't believe it is probably even necessary. But hey, if the banks take a hair cut, that is the quickest and easiest way out of the mess for everyone.
Moreover, the banks bloody well should come to think of it. They were part of the due diligence, they drank the Kool Aid and they handed over the dosh.
So yeah and sucked in they can't just roll up SGH like they did DSH (after the Xmas takings were in the till- no shame). Plus, they've provisioned the impairments apparently and copped the abuse to their own share price already.
A hair cut it simple. Sell the debt to a distressed debt vulture for 50%? No, just write off 50%! Dilution by either seizing a stake or underwriting a CR? Too risky and too much work. Voluntary administration and liquidation? The banks would lose control more quickly than they did with Arrium. A hair cut? Ahhh...
Justice and common sense.
(Not that justice and the law are the same thing. And not that common sense is common practise.)
SGH Price at posting:
29.5¢ Sentiment: None Disclosure: Not Held
