RE:WhyIn a liquidation, chances are that you will own 100% of a debt free company (as shareholders will get wiped out). You can hold onto shares, if you have faith in the company, or sell the shares and likely realize more than what company is offering you today, which at its best is 20 - 30 cents on the dollar of value in a company that still cannot service debt even when cutting the face value of debt in half. All that beng said, better scenario is a negotiation along the lines someone posted on Yellow Pages, where some new debt is issued, bondholders get bulk of equity value and shareholders end up with maybe 10% of go-forward company. And as part of deal, bondholders should get rights to appoint some directors, as the ones there right now are a disgrace. What Company is offerring today is insulting to bondholders and they should fight for their rights. They are after all senior debt holders ranking after bank debt. Fact that company announced a restructuring without gettng support of bondholders upfront just shows we are dealing with amateur hour management.