Loading up the truck, page-496

I agree, Hotfire.

The posters on HC who deny CR likelihood are missing the point of the bankers' position. The covenants would be on both cash flow and debt/book ratio. If Quindell is written down, which seems to me very likely though some may disagree, the banks will demand a CR - because they can - and it reduces their exposure. The pricing of this is anyone's guess, but it will not be pretty and make current prices look very high.

The way through without a CR is if book value is kept in tact - and cashflow is good. But cashflow alone is not enough.

The way to complete ruin/zero is
- writeoff rather than just write down Quindell (this is possible but seems to me unlikely, though some commentators are suggesting it), or
- accounting actual dishonesty revealed (nobody suggesting this for SGH though Quindell accounts prior to purchase are under serious fraud investigation in UK)