1) Debt is not huge. $44 m debt vs $43 m in cash - what's huge about it?
2) $2 has nothing to do with anything. It's an arbitrary number that depends on a number of shares issued.
3) Company's troubles are well known and well priced-in. GS is not paying for them; people who bought this stock at $20/share did.
Current valuation implies bankruptcy; otherwise a profitable company with $1.6 billion in sales can't have a market cap of $180 million (0.11 x sales is way too low). GS is making a bet that the "troubles" are blown out of proportion and the company will survive. If so, the company will be substantially repriced (up to at least 1x sales). Might take some time, but odds are pretty good and upside/downside ratio is great.