It's hard to let go, but..........., page-92

I don't think it was SGH who contacted authorities about Quindell. There's been allegations of all sorts of frauds regarding Quindell long before SGH turned up to buy the PSD. The Chairman/founder had also resigned in disgrace after lending his shares to dodgy outfit in Indianapolis (who sold them on market) and then he misreported the transaction to the exchange. He's would be being asked some very serious questions all sorts of things now in the UK Serious Fraud investigation into Quindell.

If Quindell ends up dragging SGH into an emergency CR at steep discount to now, or even if sp just only gradually recovers over years due to Quindell, it is going to be one of the great questions for business historians what on earth SGH were thinking paying $1.3b for the Quindell PSD. Whether it can generate cash or not, I hate the Quindell PSD model in UK. Lots and lots low value claims - quantity rather than quality driven by very aggressive marketing with slogans like "easy cash", in a market that is notorious for very high fraud rates these type claims.

The perfect is storm is Quindell has happened to SGH at same time as profitability/accounting and cash generation of Australian business is also under question, and having gotten into so much debt so don't control own destiny.

The "go broke" hypothesis is that SGH not generating cash at all and can't generate cash fast enough and lenders won't tip in more in these circumstances (or not at least without wiping shareholders out first).

I don't know how many lawyers sold in for equity and have been caught out. It is an interesting question. Glass half empty view: there's a lot of very disgruntled people wandering the corridors. Glass half full: lot of people inside with incentive that sp rises. I think the reality is SGH would now be a very strange mix of haves/have nots in senior lawyer ranks, with many who took cash only or sold out earlier, and many who have been wiped out by sp falls and own debt.