would this work: 1. Rather than sell off their debt for 20c in...

would this work:

1. Rather than sell off their debt for 20c in the $ the lenders could write off 80% of their loans (which they are doing in any case by selling at 20c) and write down the debt owing by SGH to $140m

2. SGH do a 1 for 1 renounceable cash issue (preferably underwritten) at say 50c (300 m new shares issued) - a potential 100% gain in a year for investors if SGH can get back into profit

3. The $150m is used to pay off the outstanding debt ($140m) or as needed for working capital

4. The lenders are issued 280 m options at 1c

Total shares on issue would now be 300+300+280 = 880 m
Not too hard to see a return to profit - say $88m and at a PE of 10, share price should be $1+

Lenders will have shares worth $280m; have received or still owed $140m and SGH surviving, paying dividends or even increasing earnings - making the shares increase in value further.

Lots of variables, but could it work?