As the debtholder exits, there is an influx of supply in the...

As the debtholder exits, there is an influx of supply in the market. Savy buyers will not bid that high if they know that debtholders are exiting. On the other hand, buyers will not bid below the price they believe that debtholders are willing to take.

Once debtholders completely exit, then the only ones left are shareholders and the company. And what is left playing will just be genuine buyers and sellers.

Put it this way, debtholders are like a third wheel in a relationship. Once the third wheel is gone, relationship between the company and the shareholders is much better. But just like an exiting third wheel, it will always cause some heartaches in the process.

Cheers.