AVD has high bank debt and convertible note debt and little...

AVD has high bank debt and convertible note debt and little income. Is it the next sub prime victim ?

Directors got there shares for nothing and I assume no one would margin them so there would be no issues there.

The only concern would be there relatively large bank debt and the ability to service that debt. A double whammy would be the convertible notes due in June.

This company cannot continue to raise any further convertible note issues or equity based issues based on its performance to date and its current share price status. The only way out would appear to be asset sales.