I'm afraid you are horribly wrong about the swap value.
"A debt for equity swap would involve something like Slater & Gordon issuing $100 million new equity in the firm to the banks for every $50 million of outstanding debt. This would be extremely dilutory to existing shareholders, but would allow the firm to effectively pay down some debt, close its loss-making UK businesses, and generate enough future cashflow to pay off the principal and interest on the remaining debt."
It does however indicate that it is more likely that only some of the debt would be quit this way. So if you believe cash inflows will be enough to quit 25-50% of debt then dilution is a lot less.
No guessing - lets wait and see.
SGH Price at posting:
27.5¢ Sentiment: Sell Disclosure: Not Held
