NZF Group (NZF and NZF010)

[Enumerate]

Election Procedures
If the Company has given notice that the Noteholder may renew on new conditions, not later than the date fallig 13 Business Days before and including the Maturity Date, the Noteholder may elect whether he or she accepts the new conditions.

This is date is the 24th of February

If a Noteholder elects not to accept any new conditions offered, then no later than 10 Business Days before and including the Maturity Date the Company (at its discretion) may elect to redeem (by way of payment of cash or by the issue of Ordinary Shares) all of the Capital Notes.

So, this is the mechanism for busting the "death spiral" - after the election date but before 10 days before maturity - if you have elected to convert to shares, they can redeem your holding in cash.

So, the proper "death spiral" predator will:

1) Elect to convert to shares
2) Wait until 10 days before maturity (hoping for light volume on the VWAP)
3) Within the 10 day window to maturity (also within the 20 day VWAP calculation interval) and then dump high volumes of shares on market to drive down VWAP.

Bottom line: if you want cash - convert to shares and be prepared to play hardball in the establishment of the conversion VWAP.