Anchorage buys debt, page-122

But why? Essentially you are saying Anchorage would buy all the debt, then convert to equity. This means they believe in the fundamentals of the company (hence "forgiving" all the debt, and trading for equity - with the view that the equity stake will outperform the debt piece - which they currently got for a 62% discount! This means that their equity share will have to more than double just to be on par with the debt's value..)

This makes no sense to me. If you believe in the fundamentals of the company, just buy equity on market now ..?

I think a more likely path is that they see that the debt will be repaid - but not as per the original loan agreement. But they are prepared to be a bit more flexible with the terms, but in exchange make 2.6x what they paid for the debt (100c/38c)

I've probably worded this badly, but hopefully you get the point !