I am back. So is SGH, page-1087

Krispy,

It's clear that you have a lot riding on this outcome and it's funny to see the bulls who were going to leave the HC chat forum come back in a fury of positing the second some 'positive' news is released.

In any case, I expect the stock price to fall. The case against WTG is weak based on SGH's own, repeated admissions that significant due diligence was conducted. Even if the case was strong, WTG doesn't have sufficient assets and any attempt to retrieve assets will likely be a prolonged legal battle. Using the repeated rantings of SWC and DCF analysis, the current value of the probability adjusted payout after legal fees that SGH may get is much smaller than the 650m pounds they put on the announcement.

None of this changes the fact that debt holders control SGH now. Forget about the BOD and forget about current shareholders. What is happening now has little relevance to current equity holders as they will be diluted to effectively nothing by Anchorage. If holding equity now was valuable, Anchorage could have arranged a private placement of equity directly with SGH instead of giving them a $40m working capital loan. Why would they lend money and not take equity if current equity was of any value? It's simple. They know they can get more valuable equity in the company during the D4E.

LOL. You guys are still as screwed as you were last week.