Ann: Settlement of Hall Proceeding, page-25

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SirEdmund

764 Posts.

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21/09/17

20:53

Post #: 27380211
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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

'All employees and clients are kept 100% happy.'

I believe that statement is about 100% wrong and one of the main reasons why admin would not be a desirable outcome at all. Once they go down that path clients and employees wil race to the exits, it'll all turn to sand in their hands so fast they will end up risking salvaging less than the banks did percentage wise, if they're lucky. Not to mention the regulatory headaches. There's a reason they haven't taken that path..

SGH Price at posting: 7.6¢ Sentiment: Hold Disclosure: Held
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Ann: Settlement of Hall Proceeding, page-25

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