Zargon Oil & Gas Ltd T.ZAR

Question about the Debentures

[alkhor]

Zargon currently has no debt except for something like $42MM owed on the debentures. I believe they have a revolving line of credit with no money against it. In all the news releases they refer to the debentures as subordinated debentures. If they have a new bank loan, will the debentures be subordiate to it, even though it was there first? In my opinion, they would have to ask the permission of the debenture holders to take on additional debt if they are to stay subbordinate,

Of course this could easily be resolved if the first act of a new loan was to pay off the debentures.