Ann: Market Update Amendment to Syndicated Facility Agreement, page-358

Good example. Hard to compare with SGH as Contech are a private company so can't see full details of the deal.

In the original announcement (http://www.prnewswire.com/news-rele...ructure-and-new-corporate-name-138923399.html)

Contech is pleased to announce that it has new ownership in place; equity investors including Anchorage Capital Group, LLC, Littlejohn & Co., LLC, Tennenbaum Capital Partners, LLC and Farallon Capital Management, L.L.C. These investors have worked with Contech, its equity partners and its senior lenders to recapitalize the Company and secure long-term financing.

This reads an awful lot to me like the equity investors / vulture funds took 100% control of the equity of the company. There was debt cleared and new funding put in place as part of the initial deal. (You can read the full article - I'm not being selective in my quoting here - I see no evidence the original shareholders were left with anything). They probably retained some percentage - but not the lion's share.

Now - granted - the company was turned around and went on to achieve exciting and wonderful things and a terrific exit for the equity investors / vulture funds - however the original owners/shareholders in Contech saw very little or possibly even none of that upside.

Which is the danger I foresee for SGH shareholders here. Consequently I lean towards caution and prudence in this case.

Always got my eye out for opportunities!