Barclays offloads Slater & Gordon debt to BAML: sources, page-84

Maybe you don't understand simple concepts?

If the banks reduce the debt with $1 in exchange for $1 shares everything else equal the share price would stay the same as the equation has purely moved a $1 debt to a $1 share.

Dilution? Yes

But at the same time the value of the company increases by the same value as the debt has decreased.

Of course that is if the debt reduction = share increase.

Nobody knows if that is what exactly is going to happen.

However in the real world the share price could very well increase as the market now has certainty of a future which is one of the major drivers of the share price.

All the above in my opinion.

Do your own research