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S&G have a problem with their trade through plan:

1. All the creditors in the secured lender group need to agree to their proposal.
2. All the creditors will wish to be treated the same.
3. The creditors will not wish to see another creditor getting a better position.
4. None of them will wish to see their position worsen or their risk increase.

I suspect these objectives will be difficult to satisfy.

Whilst the creditors will no doubt agree to a repayment holiday they will be loathe to put in any extra cash to give the firm the headroom which i suspect it needs to trade through.

All the creditors will have already made provision for their loans to be fully written off. This means that whoever is managing the situation in their business support team will have to authorise increased lending on their watch......a career killer.

The creditor group will therefore be pushing for an orderly wind down or pre-pack as they may get a small return and it avoids any repetitional issues flowing back their way. The SRA will support this also as it rules out the need for an intervention.

So what does this mean in practice~:

Clients, Banks and the SRA will be happy.

Staff and all unsecured creditors will get burned.

And finally some third party law firms will pick up some cheap cases paying £30p in the £1 or the WIP.

Welcome to the suck..................