the fundamental business is in fair shape, page-2

McgrathNicole has been in there for a long time, I wonder what is the effective date of this report. Maybe what it's saying is that SGH is in good shape, but will have difficulties paying down it's debt when fall due in two years time?

But if the cash flow returns to normal, and the business stabilize, why would the bank want to pull out of a deal that provides above market return for their loans. I feel the banks may initially feel like they have no appetite to lend to SGH, but after few years they will fall over each other to try to lend to SGH again, which is where they were prior to the write downs isn't it?

Anyways this is good news to me. Don't think restructure is on table unless sp reaches certain level then everyone is a winner. Otherwise, why didn't the banks do it when they had the most bargaining power back in April 2016?

Sgh is in a good position, if the banks become too pushy, the directors can just lift their own team and start something else, and earn more than what they are now, the banks will be left with a big lump of mess which they have no expertise to fix (unlike the centro case, where banks have their own funds teams already managing shopping center assets).

Hence, mutual interest for the directors and lenders to ensure ship don't sink and that the balance is not tilted to either side too much. The important thing is that McgrathNicole's report confirms that the ship is sailable, given banks give consideration to keep the ship stable.