CODI is applied at the bankruptcy EXIT and only at the exit. IF and only IF, there is a cancellation and not an exchange. If the creditors received anything, regardless of how little, that is an exchanged. So, if the creditors exchange $1B of debt for 50 barrels of oil that is their problem, not a cancellation causing CODI for the equity
The information above is incorrect.
CODI can and will result in a equity for debt exchange and is measured by par value of debt + accrued interest less the FMV of equity when issued. In the above example CODI would be $1B less $2500 (50*50) or $999,997,500.
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