RE:Question You keep asking this question. A few days ago I asked you what your specific concern is. You haven't responded.
There is nothing devious here. The convertible debenture (as I call it) is standard practice in spite of the fact you are insinuating it's overkill or something.
For argument's sake, let's suppose the loan goes into default and we don't throw in any more facts. Mellon would have the right to take possession/ ownership of the movables to satisfy the defaulted debt. BUT there are laws that would oblige Mellon to follow very strict rules. Mellon can only take enough movesbles to satisfy its debt, notice must be given by Mellon to Pyro of its intention to seize moveables thereby giving pyro time to cure the default. These are just two of many rules Mellon would have to follow.
Please don't respond with some general comment or concern. If you have something specific on your mind just raise. If not, move on