Not sure exactly what you mean by equity – are you asking if the people who loaned money take a percentage of the business instead of getting their money back? YES

The idea behind it is to clean up the balance sheet and convert that $$ owed, into some sort of interest/equity in the trust  and get the liability off the BS.  We plan to offset the losses against profits,  but that will take time, perhaps 5-6 years.
perhaps this is not a possibility within an DT ? 

Any other suggestions? Thanks for you response