The bankruptcy won't dilute current shareholders, it will wipe them out 100%, not even a sliver remaining. The current equity will be canceled entirely while the current creditors will be issued new equity in exchange for part of their debt. The current creditors will own 100% of the new equity of the company. Or to put it more succinctly, quoting Willy Wonka: “You get nothing! You lose! Good day, sir!”
Chapter 11, page-8
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