If you suspect that a company will go bankruptcy next year, which would you rather hold, bonds issued by the company or equities issued by the company? Why?
If company will go for bankruptcy you can hold equity rather than bond because the bond holders expect the fixed rate of return and why they will carry risk and if you fail to pay debt interest at that time you will be questionable before many authorities whereas equity holders are risk taker and let them to take risk. The failure of interest and principal consequences are more than equity dividend and equity money.
Bond carries fixed rate of interest with no risk and they are the risk taker and equity holders are risk taker. If one fail to pay interest and principal then they can not go for further fund raising option but if one fail to pay dividend then also can go for fund raising and survive in the market and fund is main issue to survival.
It is better to reire bond and go for fresh issue of equity.