As a debt holder you are preferred to a share holder in case of chapter 11. That is why debt holder do not want to convert to common shares but to preferred shares. Also, you can pay a dividend to preferred shareholder while not paying one to common share holder. If I would be a debt holder I would ONLY accept an offer to convert to preferred shares. So the operation makes sense to me from a debt holder point of view.
If I would be the CEO of TCPS I also would want to eliminate the debt from my balance sheet. As I said in one of my posts before : Never drill on debt. That is what you say in the oil industry. You need funds then issue shares but don't take credits. Debt always has a deadline but equity capital not.
My benefit ? Well, I don't like the dilution. As a common shares share holder I don't like preferred shares. But I do NOT see any other way to go. Once the balance sheet is clean it is much easier to raise capital and move forward.
I can't turn back the clock. If I could I would not invest in TCPS at 4 cents a share. Now I'm in and have to be patient to get my money back. It either blows off or takes off. Personally all I want is my money back = 4 cents.