It’s almost the beginning of a new era for Slater & Gordon. Andrew Grech will be departing; all the current members of the Board of Directors will be replaced and the holders of the remaining debt of the firm will become owners of 95% of the company’s equity. The details of the Recapitalisation Agreement were announced to the ASX today.
Were it not for the trail of legal class actions and the action by Slater & Gordon related to its UK acquisition, it would be a completely fresh start.
It is almost exactly 10 years since the momentous public listing.
Private investors, super funds and those who acquired shares when they sold their practices to Slater & Gordon have all seen their investments wiped out; that is unless they were lucky or savvy enough to sell them at the right time. The biggest losers were the banks who took their losses when they sold their debt to the current set of lenders. Their losses were in the hundreds of millions of dollars.
Once all the litigation storms clear up, we will be able to get a clearer picture of how a law firm is managed when under the control of investment bankers and fund managers.