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These convertibles were issued "just in case" the restructuring that saw GB and ATP651 put on the market didn't within the anticipated timeframe. As it turns out the breathing space wasn't necessary but without it there could have been pressure applied by potential purchasors of these assets - also AJL would have risked being lumped in same basket as other potential re-financing cos - sp hammered.
When the convertibles were being put together there was talk of a sp div to use some of the proceeds os asset sales - so the convert price needed a clause to re-adjust. That seems fine to me. With hindsight the conversion price of $7.20 looks ok. I daresay AJL would like to redeem these early (like now) as interest payable on these is north of 11% but I don't think this is allowed - but it's a while since I read the deed.
So, these convertibles are not having any affect on the buyback or the falling sp.

BUT - another series of convertibles that I think have been fully redeemed over past 12-18mths might be having a shadow effect, with those shareholders that converted feeling nervous and offloading into the buyback. It is quite possible that their risk profile is not as robust as the long-term equity holders in this company. As I recall there were about $20m of these convertibles - some would have cashed out before AJL sarted running and it may well be that this buy back will mop the rest up.

I expect we will hear about the sp div with the half-yearly.