McGrathNicol Report

http://www.copyright link/business/...to-be-reset-insolvency-report-20161207-gt6er2

Thoughts?

I'll add my own:

To me its obvious the debt will need to be restructured as I can't imagine any way they can meet the first tranche of debt repayment. They will probably partially pay this off, but like AG keeps saying the business is like an aircraft and it needs plenty of time to get up to speed and take flight.

"The report says that the fundamental business is in fair shape" is great news to me and confirms everything I've been thinking for a while.

"but the capital structure needs to be reset, according to sources." seems to indicate that the likelihood of a debt for equity swap is high. I've seen predictions of 30c or lower, I'm really not sure they will go that low. We'll see what the SP is around the time that these negotiations take place. S&G can still seek out alternative lending and I dont think the syndicate will be too harsh, otherwise they're sending a bad message to other potential lending customers.