Existing shareholders stand to lose around 96% of the value, as a Norwegian share with a nominal value of 100 will be worth only 4, if the plans of converting debt to equity goes through. Whilst that is indeed doubtful, shareholders are bailing en masse in order to save what can be saved. Hence the value has dropped around 50% within the first 20 minutes of trading on the Oslo stock exchange this morning.
The thing is, without converting debt to equity Norwegian cannot access the next - and by far largest - tranche of support from the NO government. Without that support, they look to be pretty much buggered.