RE: "if senior creditors take a hit..." If the senior creditors are taking shares in exchange for debt, then that sets the base for the new share value. If they are taking shares, then they are not taking a 'hit'.
I'm not sure what point you are arguing.
If you are arguing that the MTN holders aren't taking a hit relative to the current market value of their investments (55 cents on the dollar), I agree with you but that's not the relevant question.
I am saying that the MTN holders are taking a hit relative to par, in which case the equity holders are not entitled to anything. Are you seriously arguing that the MTN holders are getting something worth more than the par value of their bonds?