Would appreciate somebody telling me I am wrong before I buy...

Would appreciate somebody telling me I am wrong before I buy ETWG.

Convertible noteholders are meeting on June 14th . They will vote on excluding Clause 9(b) as an event of default. In brief, ETW are in breach of a covenant that the liabilities of the company do not exceed 80%. They are currently 89% due in part to introduction of new accounting standards. Under current language, such a default could lead to winding up of company. So company is asking noteholders to vote to exclude this covenant from events of default. In conjunction with this request, ETW have given an undertaking (not sure how ironclad) that they intend to keep paying interest to noteholders). There are only around 800 noteholders and 20 of them own about 41% of the notes. In short, it is in the interest of the noteholders not to put the company into administration given ANZ is supporting company on senior debt. ANZ (senior debt) would get paid out first and noteholders second. Ordinary equity would rank behind noteholders. Given this scenario, that there is a reasonable chance (see below) that company will probably will not be forced into administration, the notes are trading at a very attractive level on risk/reward basis. i.e. 40 cents in the dollar. So you buy $1 of debt for 40 cents, if they survive, you get $1 back in October 2007 and along the way, earn 4.1 cents end October 2006, end April 2007 and Oct 2007 (12 cents);