iron clad guarantee, AG will get the bank to refinance, page-35

What meaningful and material opex cuts do you believe SGH could execute within 12 months that don't have a significant up-front cash cost?

• Sacking staff involves the payout of severance and reduces future revenue potential

• Exiting leases requires compensation to the landlord for lost rent and make-good

• Consolidating staff into existing space in other offices will involve removalist costs and might lead to loss of staff depending on where they are asked to move.

To my mind debt/equity swap is the most likely option to reduce interest costs to a manageable level given current operating cash flows and pushing a debt default down onto shareholders. The SP declines since the earnings announcement is probably reflective of this risk.