Ann: Market Update Amendment to Syndicated Facility Agreement, page-45

Capitalising is an accounting term.
It does not mean issuing new capital.
It is basically adding the interest onto the loan (in the Balance Sheet) instead of actually paying the interesting (and it passing through the Profit and Loss Statement). So the $32m is added onto the outstanding loans. Effectively it is new debt. It has nothing to do with the debt for equity proposal (currently).

The $40m is an additional loan (or overdraft, if you like) that they can use to pay wages, creditors, etc. It shows that SGH have not been cashflow positive recently and most likely don't expect to be cashflow positive in the coming few months.

I hope that helps answer your query.