I don't have opinions on any of that stuff because I don't feel it has any importance right now. For the most part it is just noise.
SGH took on too much debt. They couldn't service the debt. The banks sold it over to Anchorage and now the fate of the company is in their hands. It doesn't get simpler than that.
If it were not for Anchorage buying the debt for 25%, then the banks could have put SGH into administration. Anchorage could still do this now.
Understand who is in control now. It is no longer equity holders.
Any value that is left in SGH will be engineered to go to Anchorage. As current equity holders worth only $35m you don't offer anything to them going forward. This is especially true given most insto's have long left the stock.
Anchorage just provided a loan for more than the equity market cap. They didn't seek to raise equity capital from current holders, they didn't seek to make an equity contribution and take an equity stake. What does this tell you?
Current holders will be left behind. It is already too late. Enjoy your dead cat bounce because this will keep falling.
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