Paper debt is debt reversing the stock does not change this but only moves the par upwards from where it is today. This again will only allow the shorting of the stock.
how this works is the company has first rights to purchase the stock. Should the stock shoot above the par value due too a forward split the company will sell the excess shares it acquired before the stock split.
Any outstanding debt ie. share holders loan ie. outstanding debt will be also forward split and hence we will be back were we started with a lower par value for the debt owed.
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