D4E ratio

ok. The D4E is 99% going to happen. The only question remain is. What's the swapped ratio.

Atlas iron swap ratio was 1/2 the debt for 70% of company

Alina energy was. All debt for 80%

For SGH. The following issues will determine the swap ratio

PRO

lender bought debt on the cheap, so they are more likely to be lenient

equity is negative on paper, but in reality. It is still worth something

business can be profitable if given time to recover

staff and management own shares too


CON

equity is negative

hedge fund are sharks

class action hanging

company yet to make a profit




contribute pro and con here. We'll weight it up.