Ann: Litigation update, page-47

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Fip80

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24/12/15

13:21

Post #: 16682726
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Originally posted by jayneen ↑

Interest calculation back to 2006 and costs of what has been a long running and expensive legal battle could, IMO, double the amount payable to closer to $10 million.
Given SDL already has circa $100m of debt this will put even more pressure on the Board with regard to solvency and going concern considerations. It actually doesn't materially change the valuation on SDL, but it does put pressure on cash reserves and accelerate a re-rating of market based equity value.
Difficult to see how the auditor could support an unqualified report at the half year in the circumstances.
Noteholders will ultimately (as they did the last two times the cupboard was bare) have a decision to make as to whether they continue to support existing management and existing corporate structure.
The outcome remains obvious and unfortunately unavoidable.
Equity value for shareholders, IMO, is zero.
Perhaps it would be more comforting to discuss the size of Belinga's deposit of whether Core Mining's classification of the Avima deposit into three zones constitutes a definition of three deposits or (as intended) three zones within the one deposit.
And do not forget: China wants this to happen;The railway can do 100MTpa;Iron ore prices in three years time might be back up above US$100/t;The Pilbara is running out of DSO; etc etc - Anything else to add Westcott?
J9

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Research into the legal stability of the company would have gone a long way.

SDL Price at posting: 1.2¢ Sentiment: Sell Disclosure: Not Held
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Ann: Litigation update, page-47

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