Hmmm... I'm confused here. They want to give the bondholders and creditors worthless stock? Is that supposed to be their plan?
Perhaps they should just file a Chapter 7 bankruptcy, and liquidate the whole thing. Have a garage sale -- just sell it all off to whoever wants it. Seems like that might be the quickest and cleanest way to handle this mess...
The company is worth a good deal more as a going concern than sold piecemeal, so Chapter 7 is highly unlikely. The stock which the bondholders and lenders receive won't be worthless. The reason the current shareholders' stock is worthless is because their shares are about to be disappeared by the bankruptcy proceeding due to the gazillions of dollars in debt which is senior to them. The new shares given to the current bondholders and lenders won't have the debt ahead of it because the debt will have been cancelled in the exchange for stock.