Ann: Settlement of Hall Proceeding, page-24

First 24 Last

Share
Profile

Follow
jimk3758

23,799 Posts.

83

21/09/17

19:50

Post #: 27378996
Share

Originally posted by HK1 ↑

You have already proven you have no idea about how to read the financial statements (ie. "massive advertising spending" and "huge amounts on consultant fees") and you still supported Grech, Skippen, et al and yet put down the only people (the New Lenders) that are stopping SGH from being insolvent. How exactly are you and the employees going to buy SGH. What "fire sale" will happen?

And you don't know the rules, clearly.

When you say they will need to go through the court system, what do you mean?

If the no vote wins, the process would most likely be:
The New Lenders withdraw support from SGH.
When this happens, the BOD will have no choice other than to put the company into Administration, as if they don't they would be trading while insolvent.
Business will continue with S&G - the Administrators will go through their process. Effectively the BOD becomes redundant and the Administrators take over the business and are able to make the best decision for the company.

End result, the Administrators can pass the company to the New Lenders in order to pay off the debts that they are owed (as no one else will be able to pay off the loans), in return ensuring all the employees get keep their jobs and things continue as normal. All employees and clients are kept 100% happy.

Current shareholders lose everything. This is not my opinion, this is the the (highly) likely scenario of what will happen if SGH is put into Administration, based upon the facts and what happens in reality.

Expand

I don't think anyone could have said it any better or clearer. If the lenders don't get the approval vote required they will most likely withdraw support forcing SGH into VA as required by law.

SGH Price at posting: 7.6¢ Sentiment: Sell Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

Top Stories

SI6

Nanocap Si6 Metals to kick off drilling at Monument gold project WA, chasing past hits

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

BNZ

BENZ Mining jumps +17% as it snatches up WA gold projects from Spartan Res

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

LRD

Lord picks up high-grade copper play in Western Australia, with past intercepts of up to 6.62%