How about this: *** Lets just say for argument sake (end result)...

How about this:

*** Lets just say for argument sake (end result) the company is worth $500m with $0 debt

Lenders are owed let's say $200m (what they paid for the debt)
Offer them $300m to walk away and tear up the true debt level
Anchorage and co make $100m or 50% ROI in what 3-6 months?

How to raise $300m?
Raise $400m at 20cps = 2bln new shares

So then you end up with:
$100m in the bank
2.250bln shares at 22cps = $500m market cap
No debt
Possible to recoup funds from Watchstone straight back to company bottom line/holders
Cash in bank to resurrect company.

* current holders would be diluted (share wise) to circa 11% but on the flipside assuming $500m market cap their say parcel of 100,000 shares at 9c ( valued at $9000) are now valued at ($22,000)

So who's chipping in?