Capital Structure Strategy in Financial Distress

ABC Corporation is currently evaluations on its capital structure amidst increasing financial distress. The firm has a debt-to-equity ratio of 2:1, and its interest coverage ratio has fallen below 1.5, signaling the potential inability to meet interest obligations. ABC's management is considering various financing alternatives to improve liquidity and solvency. Among the options they are contemplating, which of the following capital structure changes is most likely to minimize the risk of financial distress in the context of their current situation?