My take on conversion.Essentially the bondholders are still in...

My take on conversion.
Essentially the bondholders are still in the box seat.
They can elect to convert to ords, up until two weeks prior to final maturity in dec 2012.
What will the conversion price be? Who knows.
They might take profit and run, or fight for a better conversion ratio on clauses such as continuous production.
At the end of the day we aren't in control, so don't worry about it. The company needed the hurt money and now has plant and cash flow. The similar company i will write up has spent about 350m on capex, so all in all we're doing fine with just 62M!
As i said earlier, the mind set of bond holders is typically different to ords investors, with usually much deeper pockets.
Money in the states is valued at zip via the fed, so taking a decent return from us via senior debt with a good company making cash isn't silly. The risk of conversion and market on sell seems fairly low and won't hurt the company in the long run anyway. All good.
Mav