OTCPK:ARNBF - Post by User
Post by
freenpvon Jun 23, 2014 5:48pm
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Post# 22687314
Bad deal for convert debt holders
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.?