convertible notes

Hi, I am a bit of an ignoramus re convertible notes.

IDl have issued some 13 mill shares at 0,39c to convert/purchase convertible notes

Conversion of 5,000,000 Convertible Bonds Due 2011
Industrea Limited (ASX:IDL) received a conversion notice of 5,000,000 convertible bonds due 2011 on 18 November 2009. In accordance with the conversion notice the company has issued 12,820,512 shares at the direction of the bondholders in accordance with the conversion price under the convertible bonds of $0.39 per share

I dont really understand the implications of this notice. Bonds are due in 2011 so converting now at 0.39 cents ... is that good or bad ?
What does this do for us holders good/bad