Slater and Gordon Limited (ASX: SGH) witnessed a share price rally of 4% in the last five days, as on March 30, 2017. The group has now released few key announcements. In view of the discussions with its newly comprised senior lenders, it has been agreed that the group can make further amendments to its Syndicated Facility Agreement which was executed recently. Capitalisation of $32m of interest payments otherwise due for payment on 28 June 2017 and consent for the company to incur new super senior debt of up to $40m from one or more of the New Senior Lenders have been the key changes. These developments with the lenders are expected to help SGH execute its plan to restore financial and operating stability.

SGH has also announced for employee share buy-back scheme (5,277,332 ordinary shares and 807,334 vesting convertible redeemable ordinary shares proposed to be bought back) as endorsed by the New Senior Lenders. The shares in discussion were issued to some employees during 2007 and 2012, and the employees were to hold the shares for six years. It has been further highlighted that the cash impact of the buy-back is less than $250,000. Post this, the group will discontinue with the legacy employee ownership plan.

The group will make further announcements to the market based on the necessary discussions and moves going forward. Lately, the Australian Securities and Investments Commission (ASIC) concluded its investigation of SGH’s financial records and accounts for the period between December 01, 2014 and September 29, 2015 and gave a green signal to the company with no enforcement action.

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