Post by
freenpv on Jun 23, 2014 5:48pm
Bad deal for convert debt holders
I own a piece of both series of converts and will be voting against the deal as it currently stands.
As convert holders we dont have the risk of the company going bankrupt on us. If they cant pay me 100c on the dollar in Feb 2016 they will have to convert us into common and we would then have 90% + of the new diluted company. Thats fine as the company is clearly viable with a new capital structure, which debt conversion would bring.
So why would I ever agree to only get 82.5c on the dollar plus some warrants that are worth about 1c.?
Comment by
jd43xl on Jun 23, 2014 5:56pm
Deb holders get screwed, and they get to keep their jobs? Give me a break. But I am just glad to have the opportunity to rid my portfolio of these leaches.
Comment by
jd43xl on Jun 23, 2014 6:10pm
Most will be glad to get away from these guys, so I see little chance for getting a better deal. I have plenty of places to invest the money I get from the debs, so lets just get'er done!
Comment by
rad10 on Jun 24, 2014 9:46am
Agreed Vince - I picked these up late last year. Why would I vote for this?? Makes no sense for a bondholder to accept this.
Comment by
rad10 on Jun 24, 2014 10:10am
+1 Good advice Free. This offer will be improved in due course. No need to accept anything as yet. 9 month warrant - they are having a laugh.