Unfortunately you are once again a little out of whack with reality.
The Banks care about one thing - Getting as much of their money back as possible.
The Banks appointed their 'Get a Handle on the situation team' in December - well before the non cash impairment and withdrawal of guidance.
This team would also have been fully aware of the January and the bulk of February's Cash Flows as at the time they called on SGH to 'Show Cause'. This is why it is unlikely that the Cash Flows of the Company improved during January and February and why the Company has not made any announcement to the contrary.
You can be guaranteed the banks are current on the operational performance of SGH day by day.
This is not a warm and fuzzy process of negotiating longer loan terms, it is a cut throat process of convincing the banks not to force them into VA. Calling in the loans to 31 March 2017 would by definition make SGH insolvent and require a VA to give time for any administrator to find other funding alternatives or a buyer.
I doubt this is the way things will play out - but I do expect some serious pain in the short term via heavy dilution (CR or Debt for Equity).
I'll make it easier for you to find the answer. Explain for what reason the Banking Syndicate could have for calling in their loans to 31/3/2017. There is only one answer to this and only one cause = SGH can't meet its short term debt obligations. Banks would have no cause to interfere otherwise.
SGH Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
