Dismissed claim?, page-36

Here is why.
Distraction, action, reaction, conviction.

SGH have an CA issue.
The best way to defend such action is to sue the main reason behind the CA, which was the buying of Quindell. If SGH wins the suit, they eliminate the CA too.

So a win/win.
Definite win for the Hedge funds, they get up to $1.2m on their $150m outlay
Shareholders would be the only real losers, both current and CA participants, no payment to them.

If SGH only half win, or it's drawn via exhaustion or non committal on both parts, SGH would be possibly entitled to all or some of the escrowed funds at a minimum, so again it's worth a punt for the hedge funds.
Say SGH get 50% of the escrowed funds only, that's $25m return for their (Hedges) current $150m investment, not a bad start.

A drawn outcome with mention from Judge that both sides have merit, this will also hurt any CA. So again a win/ win for SGH and Hedge, nothing for current holders or CA.


In other words, you go for $600m to get the $50m in escrow, or at very least a decent portion. It's a punt worth taking IMO for the new holders/soon to be 95% owners of SGH, the hedge funds.

The hedge funds are the ones now controlling SGH and its direction.
It would be the hedge funds enacting SGH to proceed with the suit.

The new lenders have paid circa $150m for $1.2bln in SGH loans.
They now stand to possibly gain:
$600m+ via lawsuit
or $50m in escrow or part there of
or $1.2m in loans (to be paid by SGH) over time
and/or script to be taken in lieu of cash and control of SGH circa 95%+

So you simply start at the top and work your way down the branch.
Normally with suits of this size there is an element of truth for both sides of the coin, so worth the punt as they inevitably get settled.