SGH is a mess - what a disappointment, page-284

Care to substantiate your claim that 'the lenders want in as shareholders' ? And your other claim that 'clearly they see more upside on the equity front compared with the debt side of the ledger' ?

I don't claim to know what they are thinking but can't imagine why they would demote themselves from the head of the queue to join the masses. As it stands they appear to me to be in the strongest position of anyone who is currently bailed up inside the SGH tent.

Let's say they did want in as shareholders as you suggest they want to do - I think net debt is like $720MIL or so yet market cap is currently $63MIL. The creditors are not a single entity and likely have different ideas about what they want out of it, but pretending that they operate as a syndicate, what argument could SGH possibly put to the the creditors to convince them to swap D4E when the sum total owed is nearly 12 times the sum total of all the equity currently on issue? If you are going to suggest dilution of current equity to issue millions of new shares to cover their $720 MIL I would counter that you have now diluted to the point where shares are worth next to zero so why they want them.


Care to elaborate on how you see that play out?