You say "One piece of evidence is that SGH cannot possibly pay...

You say "One piece of evidence is that SGH cannot possibly pay it's [sic] debt back" yet you provide no evidence. As I said before, "there appears to be no information on what the status quo actually is". So please, if you want to argue based on evidence, please first provide the evidence.

Your argument "face value debt approx $700m to approx $200m market cap equity current" is surely spurious, because (a) market cap and equity are different beasts, and (b) banks basically don't operate off market cap.