It's a good sign within the context of a bad situation that...

It's a good sign within the context of a bad situation that they'll trade debt - a higher ranking, compound earning instrument for ordinary shares. We as shareholders are better off for this imo. Then there's the positive signal it sends about creditors intentions at this point. My view is that an overhang of shares can always be bought back on market and they should do whatever they need to asap to get back up to production - ie raise capital now, take more loans, etc.