DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Minority Shareholders Update

[menoalittle]

Sure it's a risk, which is why debs are trading at half the price the might be otherwise.  But what government in the world do you suppose is going to risk awarding a multi-year, megabuck contract to a company going through BK?  If the intent is to push DA into BK, then Clairvest might as well pull a gun out and shoot themselves in the foot.  
<br><br>
By owning the whole thing, there is a whole lot more reason behind bankrolling it until the big dollar contracts are safely in the bag.  Now, if at this stage of the game you think that there was any chance in H for the stock to rise above the convert price so that it would add anything more than face value to the bonds.... well, you're friggin' insane.  Best a debholder could hope for would be to not get beat up too badly in the forced conversion to stock at maturity. (And yeah, there's no doubt it would be a beating.  It'd only a matter of how bad the mauling would be, and the bonds would never trade at par.) Therefore, though it be a tough pill for stock holders to swallow, it appears to me that deb holders actually end up in a better position than they were in previously.