"If the Soliton debt and equity swap proposal goes ahead, it...

"If the Soliton debt and equity swap proposal goes ahead, it promises to save RFG from almost certain collapse.

The company, which owns brands such as Michels Patisserie, Gloria Jeans, Donut King, Brumby's Bakery and Crust Gourmet Pizza, has almost $260 million in net debt, most of which is due to be repaid this year.

However the Soliton proposal would significantly dilute existing shareholders, who have seen their shares fall from $7 in September 2016 to a low of 13¢ last month, valuing the company at just $24 million.

Subject to shareholder approval, Soliton would inject capital via a convertible note which, if converted, would account for the bulk of the company's equity."

You can read more here - https://www.copyright link/business/retail/proposed-retail-food-group-disclosure-under-scrutiny-20190710-p525ta