The Slater & Gordon Limited (ASX: SGH) share price looks set to make it two days in a row of declines.
In afternoon trade the embattled law firm's shares are down almost 7% to 8.2 cents.
This extends its 12-month decline to almost 79%.
Why have its shares fallen?
On Thursday the company announced a deal that will see its hefty debt cut to just $30 million.
To accomplish this, hedge fund and private equity owners have agreed to write off the debt in exchange for taking a 95% equity ownership interest in the business.
As we wrote yesterday, by doing things this way, existing shareholders have been diluted around 20x.
But they are left with a company with a manageable level of debt.
Though judging by the sell-off, some shareholders aren't completely satisfied with the agreement.
