What struck me about the release this morning is how the positive nature of what was said is a complete 180 from what K&E and Akin stated in their reasoning against formation of an equity committee (namely, that Chemtura is "hopelessly insolvent").
As for debt for equity dilution, bring it on if it helps alleviate the debt and gets us out of BK with commons intact. Debt for equity with a new issue, on the other hand, would be met with the mother of all fights, including lawsuits, I imagine. Fortunately, everything, including financials, documents, billings etc are all public records. However, I don't see that happening, especially if an asset sale is finalized.
These events are being watched very closely by those with equity interests.