RE:RE:RE:RE:RE:RE:RE:RE:peterson Again your thinking is flawed .....
fundamentally their is nothing wrong with IB doing a debenture deal with Xly
from their position the risk is zero, they either
a) get all their money back in 3 years plus 4 % interest every year
b)convert to equity should the sp climb above .81 in which case they would have in the neighborhood of 150 million class a shares and could dump those shares without reservation
c) if They fail to convert there is zero chance Xly has the means to repay 125 million and IB would all but own Xly
btw IB didn't directly invest in Xly but went through a shell company ....ask your economist buddy why that was ....
so as I said your thinking is flawed as their is nothing but upside for IB and zero upside for the retail shareholders so as I said structure is set up to enrich executive and financiers at the expense of the retail shareholder ie scam
in this case IB makes money and the executive extend their runway so they can continue to pilfer the Xly piggy bank
and you as a shareholder get what exactly ask yourself and you economists friend that one !!!!!