All SGH questions - put here (financials ONLY), page-412

Geralvin - the way it works is like this.

Banks do not want to be seen - or have any record of - themselves making decisions for the company they lend to. If they do this, they leave themselves open to being sued later on as "de facto" directors of the company (SGH), because they were calling all the shots, and maybe for example, the company later goes belly up or trades while insolvent etc.

So the conversation that goes on in Australia for most mid sized companies is something like this:

Senior Bank Person: We would like you to engage a debt restructuring specialist with a view to assisting you in reducing the amount you owe us.

Company Director: No - we do not think that is necessary and would be a waste of money for us

Senior Bank Person: We quite understand and respect your position, but I am sorry that from tomorrow morning we will be dishonouring all your cheques and other payments

Company Director: Well, who did you have in mind ....

Senior Bank Person: We were thinking that FTI would be a good fit.

Now for a company the size of SGH, the conversation will be a bit different, as - depending on whatever is actually going on there cash flow wise - the bank may not be in a position to dishonour payments. But there are still many other levers the banks can use against SGH.

If you get my drift ...