SGH 0.00% 54.5¢ slater & gordon limited

Lenders force SGH to restructure, page-213

  1. 3,053 Posts.
    lightbulb Created with Sketch. 2
    1) If the company goes into administration, they will need someone to restructure the business in administration. You are right in that they are currently committed to trying to salvage something from the company - however they are trying to salvage it for the lenders, not equity holders.
    2) They are restructuring specialists. I'd be willing to guess they are looking at restructuring the UK business in order to salvage some value for the lenders.
    3) SGH was expected by management to be have positive "gross operational cash flow" in December. However they had the opportunity to say that had turned out to be the case in their January cash flow update, but they didn't, and they didn't reiterate the headroom number or reiterate that it was expected to increase, despite having previously said they would update the market in January on the cash flow situation. You can draw your own conclusions from that, given the trajectory of the business relative to SGH predictions and forecasts.
 
watchlist Created with Sketch. Add SGH (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.