SGH - SLATER & GORDON LIMITED

[triage]

I don't follow this stock but articles such as this one, which appeared on the ABC news webpage last night, certainly suggests there is an issue with the company's balance sheet.

 

http://www.abc.net.au/news/2015-11-26/ques...e-dives/6978296

 

I dunno whether the fact that these questions have made it into the msm is a good or bad thing for its prospects (???). Probably auntie thought it had more general interest on the angle of it being in the workers' corner - as I said, I know nothing of it but my only impression was that the legal firm was sometimes portrayed as an ambulance chaser (??) - and also Julia Gillard used to be a partner there (again ????).

 

[grevillia]

Our lawyers are smart, but not as smart as the British who sold them a pup, probably knowing what legislation was coming.

[nipper]

that is hardly the point

The UK government is simply doing what other governments have done in other parts of the world including Australia. They are trying to limit the workings of the injury compensation machine, which is well known for being open to rorting. The UK regulatory response comes after years of complaints from major insurers. UK Chancellor George Osborne said the government would remove the right to obtain general damages for minor injuries such as soft tissue injuries.

 

This regulatory risk has been talked about in the market by analysts such as Oscar Oberg at CLSA for at least six months.

 

"Following the UK election in May, conversations with our industry contacts have suggested the possibility of future regulatory change that may impact the UK personal injury sector," he said. "This reflected the Conservative Party winning by a majority and the influence the insurance industry has previously had on the party in instigating change within the sector." However, Oberg thought that any change in the law would work its way through over two to three years.

 

@FinancialReview on Twitter |

[rozz]

Shines treatment on Friday seemed an overreaction IMO.Buying opportunity here.

 

[nipper]

Slater & Gordon is 'almost certain' to face a class action led by its long-standing rival Maurice Blackburn.

I would love to comment, but I just heard an ambulance siren, and I'm off to investigate

[mercury]

Glad to be NOT in this one. Will the banks pull the pin? something has to give...and it seems like it is giving now. Falling into a hole.

 

What chances does the company have of surviving....any bankers out there with a thought?

 

 

 

[PatienceToWin]

SGH SP is currently rallying towards its high of $0.68 after the May 2 annc. when the banks offered there support allowing SGH time to gets is business in order before loan repayments are due in May 2018, IMO SGH is a BUY and will rally leading in to the FY result in August.

[nipper]

20c ......... so, sue me?

 

Slater & Gordon has confirmed it is in talks with lenders to recapitalise the group as its debts exceeds the value of the business.

[nipper]

10c .... nothing to recover here?

Investors flooded the exits at troubled law firm Slater & Gordon yesterday amid rising expectations a recapitalisation plan will leave shareholders on the outer and make the stock "nearly worthless".

 

The company needs to strike a deal with its lenders by May 26 to continue operating as a going concern, with a number of recapitalisation proposals put forward for assessment on February 15.

 

In half-year accounts released yesterday, it was revealed the group had continued to leak cash and entered negative equity as a further savage writedown of its British business ensured its liabilities outnumbered assets. The latest impairment, of $350.3 million, led to a loss for the half-year period of $425.1m.

[nipper]

Slater & Gordon ownership passes to hedge funds

 

Wow. But which one is the pond scum?