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Of course suspension does not mean that there will be an insolvency event: however S+G has massive borrowings and is, as I understand its own statements to the markets reliant on its facilities and the AUS$100m 'head room'.

If the lenders change the terms of the facilities / call some in and so on then things can spiral out of control very quickly indeed.

If this does nothing else it will make those supplying work to S+G on credit terms i.e. CMCs very nervous and suppliers of services i.e. counsel / MROs twitchy indeed. If these suppliers withdraw credit terms then this could be enough to cause significant strain on a well placed PI litigation firm.

I take no pleasure in saying so and for the many I hope that I am wrong but I do not see this ending well.

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