Buying SGH, page-283

The concern again is H17, note 1.2, partly extracted below (I've highlighted the primary concern):
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The Group’s current operating environment continues to present challenges and uncertainty. On 15 February 2017 the Group presented updated trading and cash flow forecasts and a number of recapitalisation options to its lenders. Under the SFA, a majority of lenders by value must agree to a satisfactory recapitalisation plan by 26 May 2017. Negotiations between the Group and lenders are ongoing and the Group has reasonable grounds to believe that these will be satisfactorily concluded. Should this not occur, the borrowings under the SFA may become due and payable within a further 14 days of this date.

I understand SGH's belief that a deal will be reached within time but the problem is that 26/5/17 also looks very likely as an absolute, drop dead date. Given the inclusion of these comments from Note 1.2, one must assume that the May18 and Apr19 maturity dates under the SFA no longer apply and that these have all been accelerated to 26/5/17. That's the real problem. It's as if 100% of the debt facilities have suddenly become current. For this reason, each and every day, the directors will likely be closely looking over their shoulders for anything rushing up towards them.

It's not a very good place to be and in fact, as a place from which to function, it sucks. But unless SGH starts divesting itself of assets (ie: freeing up funds, capital, etc), and soon, it is very likely that the banks 26/5/17 ultimatum to them is actually an "all or nothing" demand. That was the reason for the comment because Note 1.2 makes it crystal clear that the banks are looking to all of their funds being recapitalised (code for, repaid) by 26/5/17. No-one said that this would be easy but with the added pressure of that comment, its just nigh on impossible.