The banks took a hit but SGH still owes the same amount of debt. Its just the lenders have changed. SGH still has debt problem and profit problem and management problem etc, nothing changed yet. Assuming the new lenders want to keep it going,...
I'm expecting a small DFE and issue, say about 250 - 300 mil worth some as a cash injection for comfortable working capital and some for debt swap so funds have controlling interest.This will dilute SH considerably i imagine. If i were them ( Lenders ) i would keep 500 mil in debt as the company dosen't make any money at present, this gives SGH more time and money to restructure properly and get their act together, if they still fail say after another 2 yrs then the lenders would still be first in line and could apoint recievers and profit if it comes to that. This makes sure the Lenders keep SGH on the leash until at least they start performing so to speak.
Thats my guess of whats to come, but could be completely off the mark, good luck finding Nemo here.
SGH Price at posting:
13.0¢ Sentiment: Sell Disclosure: Not Held
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