Ann: Indonesian Project Update, page-220

I think we can all agree we are at the pointy end of the equation now. TV2 doesn't have long term funding up their sleeve, and has essentially for the last 15 months been doing the company equivalent of living paycheck to paycheck. MEF also still has plenty of CNs to convert, which due to the breached covenants they can sell at any amount they see fit (after converting at a 10% discount to the prevailing 4 day VWAP). A loss of confidence could see the sp be smashed, and with the CN outstanding start the commonly referred to "death spiral". This would have a greater effect on a company like TV2 with limited cash reserves as it would need to raise more capital at less favourable terms, creating even more dilution. Never discount the lengths desperate companies will go to to buy themselves time in the hope that they can turn it around and find the magic silver bullet.