The company is allowed to defer payment for 10 quarters. Then, they are obligated to issue stapled securities to cover off the accrued compounding interest payments.
Hence, there will be a tranche of interest covering stapled issued to hit the market (and collapse the share price) before the conversion of the basic prefs. Sort of a double whammy.
You couldn't design a better death spiral; even if you tried.
/disc: Some BEPPA
BBI Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
