At presstime Staging Connections Group shareholders were expected to approve issue of up to 49% of the firm’s shares to its bank, NAB. In exchange for the shares the NAB will forgive $20 million in debt, which will reduce total bank debt from $70 million to $50 million.
The move values the entire firm at $40 million – $10 million short of its bank debt. Other liabilities push the value well into the red, a far cry from when it was bought for $50 million in 2003 with another $100 million poured in since.
However the prognosis isn’t all bad – the bank clearly have faith in an outcome that is likely a trade sale, otherwise they would liquidate.
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