Bearing Fruits- More Lemon?, page-92

Am I missing something here....Cash amendment fees for changes to the SFA were $14.9M. On 6th of June lenders accepted 41.6% of securities instead of cash.
If they accepted 100% in cash (amendment fees) this would have totalled $25.5M. Accepting 100% cash instead of securities, would have an immediate impact to the banks bottom line.

352 million shares on issue with a further 6.24% increase due to warrants in lieu of cash. A maximum of 22 million warrants will convert to ordinary shares in the future.

So what value can I conclude in relation to warrants in lieu of cash;
$25.5-$14.9=$10.6M (value of warrants)
10.6M/22M=$0.48 (Value of warrants at 6th June 2016 in lieu of cash)
At the point in time 2/5 Slats were confident the banks would receive 6-7% in securities instead of cash. On the 6/6 this was reinforced with favourable and improved trading conditions due to PIP (presumably).

The ongoing support from the banks which includes a strong pipeline of WIP not to mention NIHL portfolio which is off balance sheet is highly remarkable for SGH moving forward. Did the banking syndicate believe the SP was worth at least 48 cents going forward.....

I believe the interview with Alan Kohler recently, represents management accepting the past performance and with early positive progress with PIP implemented are now making a move onto the front foot. As business conditions improve, management will be more proactive with announcements with a likely U shaped recovery for S&G shareholders.

The timing of the claim (warranty) in the most recent announcement gives me confidence for the future as well. Since the start of the calendar year, all indications point to increased workloads and critical decision making from the board. With CF improving or starting to move in the right direction, management can focus on other issues for reducing the debt burden. (Fx is very favourable at the moment anyway).

I'm not going to speculate on the potential freeze on the escrow account nor the CA. All I know is Slater & Gordon are legal experts and deserve respect in their specialty of law.

All the above could be completely wrong, but these are my thoughts anyway.....