Going going gone, page-402

My last post for the weekend for what it is worth , going to enjoy the sunshine and worry about SGH on Monday ( well at least try ).
Apparently the banks have already provisioned the SGH's loans and are therefore expecting to lose on the deal , how much no one knows at the moment. Why then , can't SGH say to them Ok , we stuffed up , we can not pay you back what we owe you in the time frame , everyone knows this. If you give us more time , significantly more time, to get this right , we may be in a position to reduce the loan. For this we will pay you a penalty interest payment of 1.25% above what we are paying now. Basically make the loans an Interest only loan for 3 more years. Obviously SGH are meeting their interest obligations. The banks get higher return on their loans, they get a chance to get their money back , they let SGH get on with doing what they do. What real difference if the banks give SGH 3 more years to get it right , sell some assets ( ?) , restructure , change management , whatever it takes. According to the announcements the business is showing signs of improvement , give it time to improve and who knows the banks may get their money back. And what do they do when they get their money back , they lend it out again to some-one else , why bother if SGH is paying higher interest rates than the market place.