McGrathNicol Report, page-233

One thing I find really interesting is how everyone's jumped onto the bandwagon of a debt for equity swap. I remember the last time this happened that was the recurring theme, that the company would need to recapitalise etc etc. The lenders commissioned McGrathNicol to observe the business and it's come out all thumbs up except the debt will need to be restructured.

So what does restructuring mean exactly?

For one, it could mean that the company pays down $100mil between now and the first tranche and that the syndicate or another lender offers to refinance the facility. I'd say banks (lenders especially) tend to have a fudiciary policy to do the least amount of damage possible to the equity of a company's existing shareholders, so when given the option between refinancing and massive dilution I would imagine they will always favour the former.