AFR Street Talk article just out, page-119

Personally didn't think the Banks (major debt holders) would sell for such a large discount, but guess they were left with little option. Winding up the Company would have been fraught with danger with limited assets and potential hold ups through litigation by the Company involved (Can't think of much worse than trying to act against a Company such as this) They certainly did not want to support them further so not unusual to make a commercial decision that to outsiders looks like cutting off your nose to spite your face. Company revenue downturn would have been major obstacle to any thought of further support!
("Give us more time" is the most oft heard call from businesses in a downward spiral.)
Interesting if new debt holders are agreeable to debt swaps or just try and raid any cash flow for debt servicing in the short term. Sticking point will be the need for further funds.
I guess we will see more clarity in the next little while. A stock that has fallen this far is always an interesting look to see if a small punt worthwhile but at the moment hard to say what dilution or sp will be..............

(I know holders don't like non holders commenting, but it really is an interesting story and most people I'm sure have had various theories on what might happen - and it's all unfolding in the real world!!)