Puk, you're 100% correct on this one. Prior to the announcement I was under the belief that things would go the other way (and I don't view burying your head in the sand and hoping your problems will go away as a competant investment strategy), but now that banks have effectively endorsed their continued lending to SGH they obviously believe in them as a profitable enough company enough to agree on a deal that supports them.
Reading between the lines where SGH expects to pay lenders approx 55% of their investment in cash with the rest in new stocks and minimal dilution, they are obviously expecting the SP to rise substantially. We shall see if this happens... I think it will, it's gone up by quite a bit in the past just on spec alone.
SGH Price at posting:
49.0¢ Sentiment: None Disclosure: Not Held
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