News: SIV Silver Chef Posts FY Total Revenue Of $287.1 Million, page-27

As far as getting something back on the GG book is concerned, I think it will be a thumping loss over the next few years, but we will have more of an idea at the half year if there is any transparency about the run off.

Well we can't pull apart the financials to examine GG and SC as far as the quality of the business is concerned.
Out of $169m of total trade receivables at the EOFY, $76m of those receivables is past due, which is 45% of receivables. The net receivables after allowances is 122, (there is 26.8m of security bonds which reduces the allowances).
But if we have a component of this that is in run-off, with such a high rate of past dues, and nothing being fed into the funnel at the top, then the quality of those assets is going to decline very fast. I doubt anybody is going to buy a bunch of receivables and assets like that. I'm not sure, but it looks to me like many defaulting customers have nothing much to lose, and I suspect they will not. We can't tell how much of the (net) receivables is GG and how much is SC, but I can take a rough stab that the quality of GG's assets is the far worse.

SIV is desperately trying to meet bank covenants, and at the same time provide a fair picture of their financial state. They will not be impairing or taking losses on anything that they do not have to. Having such a massive past due ratio suggests to me that there will be a lot more impairments in GG, especially as the equipment gets older, more expensive to repair etc

In 2017 there was 288.2m of segment assets in SC, and losses, impairments etc in 2018 was $40m, or 14% of prev years assets. In GG there was 235.3m of assets, and $70.4m of losses impairments etc, which is 30%. In the previous year GG was 13.3%, and SC 5.2%. Why not take the average - 22% of GGs (aging) assets will be impaired etc costing $32m, DA will be another 25% or 36.5m. The business will make a operating loss of $10m or so (if no more asic etc), and there will be interest costs of about $5m. Revenue might be about $4m pcm if lucky with such a high past due rate (was about 9.3m pcm h1 18, and from that I estimate they got about $7m pcm in the last four months or so on ave - possibly a straight line from 8 to 6ish each of the last four months). So about 35m of that equity will be gone this FY year best case IMO, and then there are more years of stuffing around to go. A lot of the stuff will be very difficult to sell at book value - clients might tend keep renting the better assets, and hand back, or stop paying for the (what has become) lower quality stuff.

All IMO