Is the worst over for Slater & Gordon Limited shares?

What: Last night, Slater & Gordon Limited (ASX: SGH) CEO Andrew Grech responded to media speculation that the embattled law firm’s bankers had appointed investigative accountants to review its accounts.

So what: In a statement to the ASX shortly before 8 pm on Thursday, Mr Grech confirmed the appointment of the banking syndicate’s accountant, McGrathNicol.

“In our FY16 Financial Update on 17 December 2015, we informed the market that Slater and Gordon has more than A$100 million headroom within its banking facilities, that this headroom is expected to increase as the financial year progresses, and that we had commenced a review of the Company’s forecasts by Group CFO Bryce Houghton and independent advisors appointed by the Board,” Mr Grech said.

Last month, Slater & Gordon retracted its earlier profit forecasts following continued media scrutiny.

“As part of that review process, we agreed that our banking syndicate would appoint their own advisers who will work alongside those appointed by the Board,” Mr Grech added.

Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB) are part of Slater & Gordon’s banking syndicate.

Now what: Slater & Gordon was one of the ASX’s biggest losers throughout 2015, as speculation over its financial health, reporting and an ill-timed acquisition in the UK resulted in shares falling from over $8 to below 70 cents today.

Although its share price may prove to be dirt cheap after another 4% fall this morning, it would take a brave investor to buy Slater & Gordon shares today.

Don't miss your chance to "invest like a Pro"...

Motley Fool Pro -- our most comprehensive and innovative ASX investment service -- will reopen for a brief time, to accept new members. That means you've got the chance to follow along as one top investor puts $1,000,000 of The Motley Fool's own money to work...all in ASX stocks. And you're invited to watch everything that goes into our decision -- 100% FREE! We've dubbed this innovative project, Motley Fool Pro. Click here to step inside for an exclusive look around - it's FREE!

Motley Fool writer/analyst Owen Raszkiewicz owns shares of Slater & Gordon. 

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

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 Financial Services Guide (FSG) for more information.