debtenture conversion is good news toothis is great...low interest expense, and it means that the share price appreciation recently has helped pay for debt.
For example, if it wasn't a forced conversion or SP was still sitting lower than the forced conversion price...the debt woiuld still have to be paid by company funds. With a conversion to stock, yes the stock may have reason to be "diluted" ... but in essense the company does not use cash, but rather issues stock (which has appraised a lot, which makes cost of debt cheaper in a way)
Dilution is relevant when a company is fairly valued, or overvalued. For an under valued company, it shouldn't debrease share price, but rather overall market cap should increase with the share price remaining constant. This is the scenario I think should happen...