RE: Depends what "is" is. I interpret that to mean that they want to refinance the bank debt with another MTN - probably secured and sugar-coated with lots of dilutive warrants - in order to get rid of the bankers who are in their face 24 hours a day. If they could do a new financing, then they are in a position to start getting creative on MTN repurchases.
Unfortunately, if they pull that one off the MTNs recover 50% of their value and they lose a rare opportunity to buy back debt cheap. The way they should have played this game was to structure a credit line that let them use the money to buy back debt cheap, then create the doubt in the market's mind that allowed the debt to sink in value.
I get the feeling it's just the wrong management team for the problem they actually have now.