RE:RE:RE:Special meeting of debenture holders2young2invest wrote: Well, I owe like 0.15% and was planning to get my money and move on as well.
Questions is who owes the rest 99%? :)
They will redeem $10M of debenures though.
Anyway, what are the possible reasons for this proposal might be?
Kicking the debt down the road doesn't sound like a very prudent strategy to me.
I looked up and there doesn't seem to be any one big holder. So if the smaller owners vote "no" (in a proportion of 33.3%+), they will have to redeem it.
They probably want to keep a cash cushion and don't want to go to the market, so they are trying to fool the debenture owners into a cheaper than market alternative. The "V" debentures are a way better deal on the market right now than their offer, which should be frowned on. The share conversion is set at 3.5x current market price when it should be at a 45-75% premium on a new offer, so between $2.5 and $3.0 USD.