I'm not saying cashflow can't/won't improve, but that comment is incredibly ignorant. I work in the industry and I can tell you, hand on heart, that insurers don't base their settlement strategies on the cashflow of plaintiff firms. Senior management in CTP departments might not be sorry to see the back of Slaters, but at the individual level, in negligence suits, insurers are bound by legislative provisions to make offers of settlement and, failing that, awards are made in favour of the plaintiff based on available evidence. The idea that large swathes of claims are being deliberately stalled hoping for Slaters to go under is a fiction. The effect of the firm surviving - if it does - on the outcome of individual claims will be negligible.
SGH Price at posting:
13.0¢ Sentiment: None Disclosure: Not Held
