No magic. Debt is wiped by issuing fresh shares post R/S and zeroing out said debt in return. If there's 100% issuance, then there's no additional debt to convert, hence no dumping possible. Lots of things would have to happen within what I outlined, and the parties can work out the details.
In addition there should be a commitment by the company and its supporters to form a huge Bid so the price doesn't collapse post split. That would stop the erosion of market cap and value would be preserved.
Up to the managers and debt holders as to whether they want to continue to hold dead money with zero shareholder support and the chances of complaints to the SEC at every turn, or whether they're prepared to compromise and reach an agreement to move forward amicably.
WGAS management should have treasured their shareholders instead of fostering an environment where they were continually pumped with misleading PRs, dumped on by debtholders and R/S thereafter. Rise and repeat.
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