elgaes,Sorry they didn't pay down $33M of debt in 2013.Ifino,The...

elgaes,

Sorry they didn't pay down $33M of debt in 2013.

Ifino,

The notes were recently re-set, for the last 5 years or more the conversion rate was 1 share for each $2 loan note plus the 10% interest rate.

In September 2013 it was changed to 3 shares for each $2 loan notes. To ensure they rolled over the loan notes and didn't have to pay-out $7M in redemptions.

The next re-set date is now Sept 2015, so if the company can't repay the loans at that date, the loan note holders can force better terms from the company yet again, like a conversion rate of 4 or 5 shares per $2 loan note and a higher coupon.

LOTM