This is the sort of thinking thats reasonable for all rather than "ohhhhhhhhhhhh SH will be diluted 100%"... as if shareholders would vote for that than take down the lender as well...the type of company that a law firm is that it means it has largely no assets besides some work thats half done...so its hard for a lender to negotiate hard to obtain assets etc...
another rational scenario is - oh...we've bought 20c in the dollar for the debt - what if sgh is allowed to operate and lenders get their investment back in via payments... is it not 80% plus returns if possible they work themselves out of this mess...this is for distressed fund managers.
for westpac and nab - if they take back their money now - their ROEs are loan origination is ~15% so its simple compound maths to see why they want to pass on npls and get back some capital sooner than later
again, no need to attack me...just thoughts...i dont hold the stock....
SGH Price at posting:
12.5¢ Sentiment: None Disclosure: Not Held
