DFE is a measure of last resort, not of first choice. The alternative is the abyss (for the Company).
DFE is what your mates, Grech and Skippen, want. That way, they trade pieces of paper without having to pay anything back - ever. So what are you going to then pay your trade creditors with? - Perpetual IOUs always resetting to zero whenever a due date payment obligation arises?
The recapitalisation seems much more like capitulation but then again, is this not what your mates Skippen and Grech want? Burn $1.3B, borrow $900m (less now due to exchange rate variation), don't pay any of it back, almost totally destroy shareholder wealth and treat shareholders with contempt? This after all seems to be what you prefer - charity instead of success.
If the DFE is actually being considered by the debt holders and it doesn't get approved then straight following it being struck down, your few remaining directors will either then resign (to avoid having to appoint) or alternatively, VAs will be appointed.
Mind you, you had better solve things rather quickly because in <15 weeks time (before the August results release) there is a debt repayment obligation of $20m (and that's just for starters). Lol, right back at you!!!!
SGH Price at posting:
10.0¢ Sentiment: Sell Disclosure: Not Held
