Ann: FY16 Earnings Guidance-SGH.AX, page-158

Well, the story goes that Quindell paid big money to third parties to refer cases to them. That is how they ended up with a big case load they couldn't afford. The previous boss saw it as a pot of gold but the reality was most of the claims were low quality and resolution times blew out. If SGH didn't buy them out they would have gone to the wall from a lack of cash.
So I believe the reality is, apart from the delays, the cases were never very good. Add in to this people getting paid to cold call elderly people to get them to claim so they get commissions, and you see why it never really was going to end well.
That being said SGH claimed 'unprecedented' due diligence into these cases and maintains 40-50% success with just 'timing issues' causing the problems. My guess would be more like 30% success rate given how much BS surrounded Quindell.
The escrow amount is there yes, but the issue was the short term cash flow which nearly tipped SGH over the edge. It was most likely another money pit last half as well.
However, we will find out next week.