D4E ratio, page-328

Anchorage will want a great return on its investment in the distressed debt. SGH is a 'people business' Its assets are its people, and Anchorage will not want them all walking out the door, or the file owners will not bring home all the WIP to roost! Hence the investment will be found to make the company solvent. Maybe a rights issue once the debt has been written off?
I am still hopeful that a 'Redde-style' solution will be found. Redde is a similar company in UK that found itself in a similar position to SGH a few years back. It was recapitalised by way of D4E in conjunction with a rights issue, and the shares have risen twenty fold since.