Ann: Senior Lender Scheme Explanatory Statement, page-58

and that's why you are still invested. Hedge Funds will own ~6b shares, which is going to be consolidated at 100:1. They will then own 600m shares at 1c, or 10c post consolidation = $60m. In return, they will forgive some debt and also own everything in the UK (which will be flogged off piecemeal over the next couple of years). HF have said they are in for at least 2 or 3 years.

They are counting on returning SGH to profitability over the next year, then having 2 years of steady state, growing profits before they are even allowed to sell. Now a company which is going to have ~$500m of revenue and eventually some profit will be valued at what? Certainly higher than 1c and based on the earlier comments of 10% margin and PE of 10 gets you to $500m market cap. For ease, lets say they can get the market cap up to $650m, to give a share price of $1.

For every 10c improvement in share price, the HF make $60m, so come on do the maffs, from 10c to $1 is... 90c. Then divide by 10... still with me? It equals 9! Finally, multiply by $60m = $540m. That's a profit of at least $140m (assuming a total $400m investment) excluding: interest payments, receipts from flogging the UK business, escrow, the WTG litigation and I'm sure there are other pieces. That's a 35% return excluding all the other returns within 3 years.