If bonds are trading for 50c on the dollar
debt is chopped by 50% so total debt is less then 1.5 billion and assets close to 5 billion..so in that case equity goes back up to 3.5 billion$ or 70$ us a share..i might be totally right in theory... big money comes in buys the debt for 50c on the dollar and takes over the shares for a resonable premium acceptable by all. If the shorts think this is going to 0 then obviously they will take 50c on the $$ rather then nothing...one way to financial engineer this is to reduce that debt by 50% and give them higher interest rate. I remember a lot of shipping companies did that a few years back and the shares went up 10 overnight.