RE:RE:RE:RE:RE:correct me if I am wrongYou have correctly described the nature of the struggle, and ergo the gamble. I am not expecting the secured to give up anything, and I never expected that they would. For the unsecured it is not as simple as where they rank in the food chain, and it never is. That is why an amount was already compromised, although we do not yet know how much.
If the company (and therefore the common equity) goes down, the unsecured debt goes down with it. It is doubtful they those creditors would fare better in CCAA.
One interesting thing is that management has said that they are trying to eliminate over $2B in debt. I didn't really understand that, since it was overkill for what they needed. In fact, they do not have to eliminate any debt. All they really need is to amend and extend it into a long slow (say, 10 or 15 year) amortization that fits into their free cashflow, with mandatory pre-payments if cashflow is enhanced and permits. Then add to that a lower interest rate. Those compromises could be compensated by allotting a relatively small proportion of equity, and life would go on.