Let’s analyze the risk/reward here :
1) Common share canceled due to the lack of asset sale and refinancing, probability is about 33.3%, potential loss is $.50/share. ( I assume if the stock drop to$.35, the market is telling us the common stock will be canceled).
2) Common share diluted due to debt for equity swap, probability is about 33.3%, potential gain is multiples of current stock price when the next chemical cycle peak.
3) Common share intact due to significant asset sale, probability is about 33.3%, potential gain is even bigger multiples of current stock price when the next chemical cycle peak.
You can assign your own probability, but I think we have an asymmetrical risk/reward situation here.