The equity in SGH is worth substantially less than zip in my...

The equity in SGH is worth substantially less than zip in my humble opinion, but i don't think it'll go into administration as the lenders know this course of action destroys a lot more value for them than it preserves. It's a business that has no hard assets (its assets walk out the door every night) so if you put it into administration, the employees simply leave and the lenders' assets are even more impaired. The more likely outcome, i think, is a debt-to-equity conversion whereby a part of SGH's debt is converted to equity (which dilutes into oblivion existing equity), which stabilizes the business and preserves the value of the lenders' exposure far better than a voluntary administration would.