The long case... (yes there is one)., page-11

1. The Banks stand more chance of getting their money back by calling in their loans and effectively forcing the company into administration. That cuts the shareholders out of the picture. The Administrator can then look for deals on individual components of the business. As certain parts of the business are operating quite well, it should not be that hard to raise a fair chunk of the outstanding debt. Remember the BANKS will get the lot - shareholders absolutely nothing. The Banks are also in a position to accept a combination of payments up front, equity and funding agreements from the various suitors. At the end of the day once the Company is in administration the BANKS will be the benefactors of the best parts of the business, whilst the junk gets dumped.

2. This is a services Company - Employees are your greatest assets. Cutting employee costs will cost you sales and provide an opportunity for your competitors to pick up valuable assets. Cutting employment costs normally costs you significantly in upfront cashflows and takes more than 6mths to result in positive cashflows.

3. Analysts have never been close and will revise down to the market as has been the case for months

4. ASIC was of no consequence after guidance was abandoned

5. S&G was in compliance two months ago - now the BANKS have demanded a plan - so now is now not 31 Dec.

6. Australian Business will likely sell for a healthy number when the Company gets busted up

The administrator will keep the lights on and allow SGH's profitable entities to continue operating. So if its profitable it will be retained. So that valuable WIP will remain in SGH's hands.

Stop thinking its in the Banks interests to keep SGH listed. If they do want to keep it listed, then its more than likely going to cost the shareholders anyway. CR at 10cents anyone?

The risks are extreme, hence the continued exit.