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54.5¢ slater & gordon limited

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rod178

6,475 Posts.

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29/02/16

18:39

Post #: 17146842
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Originally posted by Grant62 ↑

So, the CEO offered to resign and the Board said "no". Did the Chairman offer to resign?

Very few people ever preside over billion dollar losses so very soon after they have done billion dollar plus acquisitions (F15 was known as the year of acquisition with upwards of $1.4B in acquisition activity for the year).

The near $billion half year loss is made up of real cash losses. In large part, the April CR has all but been zapped into history. What's left is a combination of historical capital (from past capital raising initiatives, from the initial float, and retained by the original vendors, etc) and debt.

With close to $800M in gross debt and the cash burn continuing (it certainly hasn't yet been arrested), Chanticleer is correct in that SGH is all but now under the effective control of its bankers.

Query then what happened to the Nowicki 2016 $10M deferred cash instalment that feel due yesterday, and whether it was paid out last Friday, or today. That will certainly be something for the analysts to consider given that the cash burn needs to be arrested very, very quickly as they have already delayed far too long tackling the required OPEX cuts (which now loom even larger and progressively more urgent, than they had even in December).

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"..the CEO offered to resign and the Board said "no".."

Just for public consumption. they have their own little club, with little real accountability.

SGH Price at posting: 58.0¢ Sentiment: Sell Disclosure: Not Held
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