" Do I think they will be able to find $10m to pay out a few noteholders in 15 months - you betcha"
I don't think so bucko.
Right now the company has $28M. If they repay 40M notes at 25 cents, well that is going to cost them $10M.
That leaves $18M for the next 15 months.
If the company is not going to find the money for its project, then it will fail. Bondholders will only get whatever money is left. If you think the company is going to sit around and preserve money just to please remnant bondholders, and at the same time let the company fail, well good luck to you.
The success of the company and the repayment of the residue bonds are tied to the same fate and are in effect on the same bus. If the bus goes off the cliff, both ords holders and bondholders go over together.
I don't care whether you accept the offer or not. It's up to you.
AXO Price at posting:
22.0¢ Sentiment: None Disclosure: Held