SGH might go private

Since Anchorage is the largest holder of debt, a debt for equity swap can essentially give Anchorage control. With control comes the power to de-list and exit ASX. Anchorage may then repackage SGH and sell it off as a company to the rival law firms. The intrinsic value of SGH remains (there's nothing wrong with the business overall, lest maybe poor management), it's just not reflective in their current share price because of this 720 million dollar debt.

Using Westpac 25 cents in a dollar swap, Anchorage can potentially buy out 720m debt for 180m plus buying out the current shareholders, e.g. current market cap of 30 million, for a total cost of $210 million which will be considered a bargain buy for other big law firms given that SGH used to be a 1 billion cap company.

Anchorage specializes in this sorts of transactions - how they bought Dick Smith privately, re-work their books and floated the company which make them big bucks!!!

As for holders who hope for share price to go up, i'm afraid the outlook is pretty grim given Anchorage is now on board.