Does anyone know what effect a debt for equity swap would have on an open short position?

I understand other corporate actions, but cannot find out any info on the effect of a d4e swap.

I assume that like other corporate actions the retail provider takes a view, and pays out when the company makes a definitive announcement.

so say the d4e swap is say 99%, so 1% shareholding remains, and lets say for ease of maths, that the price the swap takes place at is 100p, so leaving 1p for equity holders, would this mean that the short trade could be settled at 1p, or is the position adjusted accordingly as per say a rights issue?

to make it even easier, is the swap is 100% then is the trade closed at 0p by the provider at a time the company makes a definitive announcement?

anyone got any experience of this?

thanks in advance.

mrwhits.

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