The Slater & Gordon Limited (ASX: SGH) share price has dropped 9.4% today to 24 cents at the close, not far off the low of 23 cents set last week.

For the year, shareholders, who have been holding on and waiting for the better times to arrive, have seen a 96.6% fall in the share price as the chart below shows.

Slater and Gordon share price Apr 2016

Source: Yahoo Finance

Here are 3 reasons why the share price might be falling today:

  1. News that Arrium Ltd’s (ASX: ARI) bankers had rejected a financing deal which would have seen them reportedly receive about 55 cents in the dollar. With $2.4 billion of debt, you could see why the bankers weren’t keen. Slater & Gordon has a similar issue with $783 million of debt due in a year’s time, and investors might fear that the company will be unable to refinance its debt.
  2. Fallout from the resignation last week of the law firm’s general counsel and company secretary Ms Moana Weir – just two months into the job.
  3. Shareholders may have finally realised that the company is unlikely to generate strong returns in future – even if it can recover from its current ails, with question marks over its accounting and there must be concerns over management and their acquisition decisions.

3 better bets than Slater & Gordon

When renowned dividend investing pros like Andrew Page issue buy alerts, it pays to listen. Because investors who followed Andrew's recommendation of Australian Pharmaceuticals in early 2015 could've doubled their money in just over a year, turning $15,000 into over $30,000 by the time he recommended they sell and lock in their profits. Chances are you won't want to miss uncovering the names of Andrew's newest share recommendation and short list of 3 dividend Best Buys Now Shares.
So click here to learn more about these potentially life-changing shares.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.