You don't appoint (expensive) forensic accountants if you don't think there might be an issue - the banks are clearly suspicious. Not only that, but when it comes round to covenant test time, the banks will be armed with McGN's report - if SGH claim EBITDAW of X, and McGN say that EBITDAW is actually 50% of X, then even if SGH claim they are within their covenants - enabling them to draw down the 100m 0f headroom they claim they have - the banks may take a different view, and choose not to throw good money after bad...
SGH Price at posting:
72.5¢ Sentiment: Sell Disclosure: Held
