Considering KQ has NEGATIVE equity, a debt conversion is a PLUS for "minority" shareholders.
As I recommended a long time ago, "Old KQ" should have been put under administration and a "new KQ" carved out with the good assets and without most of the liabilities.
This would have been a better option for the survival of the airline but given the negative equity, the shareholders would have been wiped out and creditors would have taken a haircut.
The "Old KQ" could have also gone after Naikuni, Mbugua and friends.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett