1933 Industries Inc C.TGIF

Convertible conundrum

[Dumont]

Company wants to. Extend maturity of converts for a year, but is not offering anything in return.Benefits to the company are obvious, but there isn't much in it for debenture holders. I would suggest that the company should have to change the terms of the forced conversion from .15 to .45 
as well as paying interest in cash or .10 shares at the option of the debenture holder.
In the absence of any offer of compensation from the company for extending the maturity date, I certainly recommend voting against agreeing to extend the maturity for a year.

thoughts?

[theTransporter]

What are you talking about?  The benefit to debenture holders is antoher year of earning interest at 10%!

[Dumont]

10 %?? Only at maturity if company has the cash, and possibly only in shares valued at 10 cents .remember what happened last time convert holders agreed to new terms. Shares traded below 10 cents for most of the term, and converts traded at a huge discount. Already at a discount again in light of proposed change in term. I repeat that in order to agree to extend the term, debenture holders are

[theTransporter]

Again you're either misinformed, but you're spreading misinformation. Debenture holders agreed to receive 10% interest payments in the form of shares at $0.10 per share.  Debenture holders agreed to be paid their interest payment at maturity (instead of every 6 months).  Debenture holders agreed to lower the conversion price from $0.45 to $0.10 (the best part).