Top Ranked Law Firm, page-3

When you compare SGH debt to the size of its next largest and much smaller competitor Irwin Mitchell ($700m vs $500m) you realise that SGH debt is quite reasonable and proportionate to the huge size of the company. Remember the company borrows to finance its 200,000 cases running at any one time on behalf of its clients. Essentially this "debt" is owed by its clients and not by it. As the business grows and the number of client cases it is running at anyone time, the debt grows. Most recently the borrowing terms were not suited to the situation and had to be amended. It was rational and sensible that the borrowing terms stuffed up by management and the banks should have been sorted out. It was a disgrace this had to play out in a public way causing such panic and confusion but it is about time the share price returned to normal levels