LYC's shareholders (and bear in mind that a scheme needs a 75%...

LYC's shareholders (and bear in mind that a scheme needs a 75% vote), would not agree to MK converting at anything like the current share price. There may be a figure at which LYC's holders would support MK's $225M liability being converted into additional equity. The extinction of that debt would have real benefit, but to get the shareholder support, the notional conversion rate would need to be closer to MK's current strike price ($1.10 or so) than the share price as it stands (which let's face it, has been hammered principally because of the reasons that a conversion would eliminate). Of course there is 90c or so of negotiation space between the two, so maybe there is a deal in there somewhere. Especially if MK were to come to the table with a deal to eliminate Sojitz' loan as well.