Come on folks for Petes sakes, there is sufficient information provided to be able to state that SGH shall still be trading, the banter of late has been hysteria at its best.
SGH informed the marked that was in talks about restructuring debt and had appointed a firm of British advisers to assist with the process, according to a report. This hardly looks like the resignation of a firm about to do into liquidation right? Why spend big on advisors if preservation of life was a significant concern.
Unfortunately restructuring dept may involve the selling and raising of money through CR. This is assumption only, but the main SGH lenders may have forced the muscle of the right arm and justifiably so.
An insolvency firm has been appointed but having the ability to spread the insolvency love around, I would fear more for SGH UK holdings / assests with aim to share up the Australian heart beat, being the prime budiness strength.
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The below should provide a more accurate account of what may be released come Monday.
"Britain's
Telegraph newspaper
reported that the firm has appointed FTI Consulting after being "forced" into debt restructuring discussions"
In January, Slater & Gordon confirmed media reports that McGrathNcol, the Australian based accounting and insolvency firm has been appointed by the bank's senior lenders as an independent advisor.
A Slater & Gordon spokeswoman confirmed on Monday that FTI had in turn been appointed by McGrathNicol.
Slater & Gordon acquired the professional services division of Quindell for $1.3 billion last year, but the company was later investigated by the Britain's Financial Conduct Authority over its aggressive accounting practices.
Slater & Gordon has said it took a cautious approach to the Quindell accounts during its due diligence. But Slater & Gordon's share price has plummeted after problems with its own accounting processes, earnings downgrades and questions over the price it paid for the Quindell business.
In July
Slater & Gordon had secured a £419 million loan to finance the Quindell acquisition. The loan, denominated in pounds and Australian dollars, was arranged by Westpac and National Australia Bank with equity markets bankers Citi and Macquarie also participating. This year the lenders appointed accounting and insolvency firm McGrathNicol to examine the law firm's books.
Last week Slater & Gordon was unable to update investors on its cash flows for the first six months of the year, as scheduled, after initially warning they would be negative by $30 million to $40 million.
http://www.smh.com.au/business/slat...restructure-talks-report-20160131-gmi52z.html
