When to be stubborn can cost hips, page-41

There are intelligent and informed people with very different views about the Quindell asset. Time will tell who is right. It is tiny in scheme and could just be blip that it has underfperformed SGH expectations so far. If Quindell is as good as SGH management think, then it is gold. But the three data points mentioned are worth considering as counter views.

I don't know with certainty - the banking covenants haven't been published (except denial that they related to market cap) - but its close to certain covenants are linked to book - this is standard. If write-downs required which would breach covenants, then it's speculation, but if banks required say that debt be halved then a renounceable 5:1 at 15c would about do that. Advantage renounceable rights is doesn't need institutional support. Shareholders can sell their rights prior to exercise. If price set low enough to ensure take up, cash comes in certainly and reduces debt. Can be sure one thing: banks wont accept a loss if it can be avoided.