Im afraid that's not strictly true, a lot of institutions are...

Im afraid that's not strictly true, a lot of institutions are taking a severe haircut in the Junk Bond market like Evergrande with many more to come.

This makes the capital markets very difficult to access as greed is replaced with fear and the checks and balances are much more stringent.

Any investor is going to ask themselves the questions.

1. Do I have faith in management performance
2. Are management showing confidence in the company by purchasing stock or are they net selllers.
3. Does the company face any unresolved headwinds
4. How am I going to recover my investment through share price appreciation
5. Does the company have any long term debt commitments that could be called in on demand.
6. What are the companies lending covenants in respect of market cap and bad debt provisions and are they in danger of breaching them.
7. Would the company pass a stress test in the event of a prolonged recession.
8. Would the company underperform in an inflationary environment.

I could go on but ZIp will fail on every single point.

There is no guarantee that they will be able to raise further funds and I have seen this many times before when they pass the hat around and it comes back empty.

You have to remember that the $500 million in convertible notes are owned by hedge funds some of which have vulture status and all if they are adding to their short positions all they need to do is call in the loans if an on demand or covenant breach clause exists and bank an average $3 per share.