RE: Redemption versus Retraction?? Stockticker, you are making something simple, complicated. Retract means to 'Take back' and the means by which the retraction would happen is by redemption. Before Dec.1 YLO has the option to redeem (Retract) or convert. After Dec.1 they would lose the conversion option and be forced to redeem (Retract). That will not happen because they do not have the money, it would be suicide and their bank covenant prohibits it. They are bound to announce a conversion to common shares by Dec.1 or strike a new share issue deal with the holders that does not include money.
All that is of course on the assumption that they are not under CCAA before then. No equity arrangements are enforceable under CCAA.