So I understand Moelis called in by SGH to do recapitalisation...

So I understand Moelis called in by SGH to do recapitalisation plan as early December last year according to AFR, to present to banks in early to mid-February and Moelis have lots of expertise in doing recapitalisations including some well known recent high profile ones. What presented to banks not taken well we are told by Street talk because of 'haircut' involved they would have to take. Told in different press sources involves largely debt for equity swap but also quarantined asset sales involved. We have the timely leak of A list barristers memo (I wonder if had been held onto for a bit before leaked to the press) where get record volume since news and all time low. I do wonder if some bigger money scooping up some lot of panicking retailers heading for the gates on what looked like a big capitulation play today. Unfortunately I am not the smart money but just a little old retailer who has no courage to play this one but I am wondering if this is already being set up as the next big trade on agreement of recapitalisation plan as I would have thought if it was going to happen after presenting first recapitalisation plan to banks mid February that it should be resolved one way or another. As perhaps not as complex as I thought. Banks don't want to take on equity - easy they sell discounted debt for cash to hedge and distressed debt firms who are more than happy to do debt for equity. It is simple the banks don't have to do a deal on debt for equity - but rather choose whether to sell on their debt to those that do.

I am beginning to think this recapitalisation plan and getting agreement not as hard as others make out. Will there be something left over for shareholders is the question....maybe just maybe but nah I will wait to see the terms of the recapitalisation.