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Fishinnick

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05/06/17

08:38

Post #: 25093686
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Originally posted by elit ↑

Not been monitoring this one for a bit but yes bit of reflecting on delay in Dfe announcement with recent decision to provide capital injection with capitalising of interest got me thinking.

As just this announcement alone and surety of backing would help enormously with the negative impact uncertainty of financial support prior to this was creating on the business so one wonders with already them flagging that this half would be better with this as to whether they are now negotiating for refinancing of debt with negligible dfe swap on assumption starting to see cashflow improvements. As given how much secondary lenders paid for debt if SGH was stable enough to repay debt the secondary lenders would still make a killing and not have to give up their position in the queue if ever SGH was to go into administration. As that would have to be their first preferable option I would have thought given as many have stated taking large chunk of equity means they forego their priority repayment status in the event of liquidation behind employees etc.

As they talk about concluding recapitalisation discussions in coming weeks from memory and that time well past. Oh to be a fly on the wall.

As now curious as to how this could play out which I guess depends on current trading conditions and whether this is starting to improve following clear position of financial support given with capital injection for working capital purposes on top of SGH flagging that H2 cashflows expected to be improving.

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Overall im still expecting some sort of DFE im just not as sure as i have been in the past. Will be interesting to see the final outcome when they announce it.

SGH Price at posting: 9.3¢ Sentiment: Sell Disclosure: Not Held
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