Couple of points guys ....
The market cap is about $12m - if $12m of noteholders convert to shares (by not elected to convert to the new deal) - the company becomes a $24m company with 50% owned by the noteholders. ($12m is 60% of the $20m of notes).
Pay attention, guys ... this is important.
If $8m of holders elect to take up the new deal on the 24th of February ... this means that $12m of holders will convert to shares.
The company has until about the 1st of March, or so, to decide:
"Do we let these non-election holders convert to shares (at potentially "Death Spiral" prices) or Do we pay them out in cash?". This decision has to be made by the company before the 1st, or so, of March.
A holder, electing to convert to the new deal, is making a mistake (6% does not compensate for the subordinated risk). However, the company is "trying it on" - any one with a risk adverse attitude will elect to convert and will be contributing subordinated money at a ludicrous rate.
Those less risk adverse souls have a chance of getting cash - especially if they are prepared to play hardball.
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