Why companies do convert debentures into shares and is it can be used to clear company debts explain?

Companies convert debentures into shares primarily to reduce debt and improve their balance sheet by eliminating interest obligations. This conversion can enhance liquidity and strengthen the company's equity position, making it more attractive to investors. Additionally, converting debt into equity can provide a way to avoid cash outflows associated with interest payments, allowing the company to reinvest funds into operations or growth initiatives. However, while conversion can help manage debts, it dilutes existing shareholders' ownership and may affect control of the company.