The headline is "Slater & Gordon's banks extend and pretend to let the lawyers fight another day". Not a very promising headline.
But the key points from article are:
1. "The banks, faced with a choice, have opted for an "extend and pretend" strategy, spreading out its existing loans over three years in the hope that the company can sort itself out and generate the cash flows required to service and pay back $830 million of loans."
2. "Slater & Gordon's lenders are understood to be genuinely supportive of the company's plan and hold the view that it has a good business, a solid client base and a good position in the personal injury market."
3. "The management's plan too is said to be sensible and transparent in the face of what they feel are an unfortunate set of events that unfolded after they paid $1.3 billion to Quindell for its professional services division."
All we need now is for SGH management to execute on the "plan" that has been supported by the lenders.
SGH Price at posting:
50.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)