I don't think you know what dilution is. Of course they were given common shares....in February.
As a result, the OS increased (dilution)....in February.
If they sell their shares now, it's not going to change the OS, the shares are just going to change hands.
Ex:
January - 100,000 shares OS
February - Creditors paid with common shares, new OS is 200,000 shares. This is dilution.
March (and forever more) - Creditors sell their shares to someone else. OS is still 200,000. No dilution.