The AFR is now echoing this by saying @p11: "... lenders are likely to implement wholesale changes to the management and the board responsible for the large losses resulting from a doomed $1.3 billion acquisition of Quindell's professional services division in Britan in early 2015."
As for the future, the AFR said this just prior to the above management changes statement:
----
"It is understood the primary concern among Slater & Gordon's debt financiers - who are set to inherit the company - is to stabilise what they believe is a sustainable business, and provide confidence to the staff and clients. /// Slater & Gordon must present a plan to its lenders by the end of May. The company is likely to remain a listed entity after an agreement is reached with lenders to provide sufficient liquidity to them should their loans be converted to equity."
Further discussing Skippen's and Grech's futures, the AFR stated, at p16 the following:
----
"The pair will now face a battle to convince lenders, who will be forced to book a loss on their loans, that they should remain in place".
This is indeed bad news for the banks (arguably, it was there to be seen), but especially bad news for the legal and other professions, as the banks, in taking a blood bath on SGH, will likely tighten lending, security, reporting and investment conditions right across the professional services spectrum, including especially in relation to lawyers and accountants.
That said, I have already seen that my business loan repayments + interest for end of month have already gone through this morning. That being the case, one would also have to assume that both NAB and WBC's interest charges for the month will have gone through, this morning for AU and tonight for UK with a whole raft of taxes, including payroll, GST /VAT, PAYG, SGC, etc all coming up within the next few days.
Expand
(20min delay)