My understanding is they are going to use the new debt to pay...

My understanding is they are going to use the new debt to pay down the senior debt. They also have tangible assets worth in a the vicinity of 1.5 billion, which is only just below the accumulative debt. Of course there is risk which is why it is paying such a high level of interest, but i believe that you would be able to recover some funds should they go under.

Im pretty sure the first notes have never missed a payment, and are currently selling for $105, with a face value of 100. So that is a 5% capital gain on top of the near 11% coupon rate. Although there is risks associated with these, i wouldn't exactly call them a dog. They do currently have a track record with the initial notes for comparison.