SGH debt trades at 38 cents in the dollar, page-162

Not quite. Creditors must be paid before shareholders. They could not care less if shareholders are paid a cent.

Let's say this group who paid 38 cents wants to be paid on maturity date and not interested in rolling over. Let's say they want out like Citi but SGH doesn't have the money and another bank won't extend SGH more credit. Let's say the debt buyer figures if the company is liquidated they will only get around 76 cents on the dollar. They decide to force administration SGH and take a 100% profit on what they paid to Citi (0.38c) and no shareholder will receive one cent.

I would have loved to have sold my SGH shares and buy that debt for almost the exact same money. They did very well but I want to know why Citi took a 62% loss to get out.