Not sure how it might play out in this case but in restructurings there is often a trade off between value destroyed by "kicking equity out" completely and valu

Not sure how it might play out in this case but in restructurings there is often a trade off between value destroyed by "kicking equity out" completely and value allocated to creditors vs equity (plus there's often value to agreeing anything rather than dragging it all through the courts which takes a long time, is distracting for management and costs a huge amount). Outcomes in big restructurings where equity walks away with nothing are rarer than you might think.