aazpb, page-41

Blood is thicker than water!

The company is owned by ordinary shareholders. The CEO is appopinted by ordinary shareholders. AAZPB are preference shareholders in name only and certain legalities. The ordinary share holders (read CEO) would stop making payments to us well before damaging their own equity holdings with an equity conversion. Frankly, they don't care less that we might end up cray-potted in a non-equity/non-debt no-mans land because we are not blood brothers. In reality we are subordinated creditors that for reasons of "potential" convertibility are conveniently held on the Equity side of the balance sheet not the Liability side. That little fact is AAZPB's raison detre, because it means the AAZPB debt doesn't count towards debt covenents, gearing etc. A cheeky way to leverage up the balance sheet really.

I say never though they might convert say 5% at a time to show some goodwill I suppose.

cheers