RE: A different Debt retirement idea.
The dilution of the commons by converting the preferred is relatively small.
The bigger dilution would come down the line IF there is a conversion of the debentures. At the current share price the conversion (according to my math so do your own Due Diligence) is more than 15,000 shares for every $1,000. debenture.
Seeing what's happening with this company, I'm surprised investors buy preferred and convertible debentures at par.