Firstly I am not very confident this will go into VA and I have never said that although I think it's a possibility. What I have said is no mater what happens that shareholders will feel more pain or even be wiped out completely.
Since the report the market cap has falling significantly. Barristers are being advised to get paid payments upfront without extending credit to SGH. You can bet other suppliers are going to be concerned and tighten up credit terms. This will have cash flow implications.
I would think if minimum market capitalisation is not part of covenants at least having a minimum amount of cash on hand is.
SGH Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
