Lenders force SGH to restructure, page-207

Londoner

Largely agree. However in dot joining from QPP I tend to believe 95% success rate with Motor Claims. QPP made much of their case screening methodology. If their comments are valid then it suggests a quality portfolio and a high success rate. ( The converse could be true but if not true they must have known they would be found out so I cant see the self interest in setting up a lie)

SGH is on record saying its WIP valuations are prudent. However there seems to be a debate on legal case accrual valuations in the USA UK and now OZ. The appropriate tax take is in the debate as are too aggressive valuations and valuations wwhich are tax saving and not aggressive enough. The whole debate is frustrating because the operating lawyers, the investors, the tax man and the banks need to know the rules and paramaters. There is an absolute need for guidelines and clarity.

The debate with trolldom on iii and LSE in the UK about QPP reached lunacy levels. Trolldom argued that accruals were fraud and we all know how much a debate on accruals makes non accountants yawn.....that an absolutely defined correct accrual rate was a matter of opinion . But mud sticks.

If there is a conclusion about appropriate accruals for SGH and the QPP PSD then we can all have confidence after Feb 29.
If the australian and UK investigators cant come up with an appropriate level of prudence to guide SGH then Feb 29 may be helpful but maybe wont end it. Perhaps we know why QPP wrote off all WIP .....delayed publication of its an report until the PSD sale had completed and broke time limit rules on reporting. ( It could not have written off WIP if the PSD had not gone through)

I dont for a second believe QPP or SGH is guilty of endeavours to mislead. The obvious truth is that QPP were not lawyers and found itself unable to finance HL case processing and possibly more seriously, didnt have the legal strengths to get the HL case processing right ( I am guessing) My view is that the banks refused to finance HL. The stupidity of taking on HL meant overtrading and it brought down the QPP Chairman and board.

The Motor cases processing business haowever remains a good highly efficient business.

However 29 Feb should help.

Mel