EMBATTLED law firm Slater & Gordon (ASX: SGH) has called on its shareholders to vote in favour of a recapitalisation of its “unsustainable debt levels” otherwise it will become insolvent.
Slater & Gordon says it owes a total of $761 million, as of 30 June 2017, which it cannot pay down and the debt level is greater than the value of the company which means shareholders will get nothing if it moves to insolvency.
“If the recapitalisation is not implemented, the directors consider that Slater & Gordon will not be in a position to repay any amounts due under the syndicated facility agreement when they become payable,” says chairman John Skippen.
“Accordingly, the directors consider that, without implementation of the r…
Read the full article at: https://www.businessnewsaus.com.au/articles/slater—gordon-moves-on-massive-debt-to-prevent-insolvency.html
