convertible notes

Thread for major potential ISSUE raised by ARDROCK concerning Convertible Notes maturing June/July 2009.

Given URL's current CAP this could mean the dilution of URL stock approaching the "basket case" level.

Somehow, I cannot see major shareholders (Xstrata in particular) seeing their investment diluted by half.

If SP has not improved a lot before then expect a flurry of buying activity leading up to the VWAP period. Hence the urgency in URL doing a deal (with Xstrata) to provide valuable cashflow and policy statement concerning dividend payment(s).

Appears that URL management did not have the nouse to put a lower limit on the buy-in price (manifestly a "hanging offence" if stock is abnormally diluted as a result).