They might turn their debt into convertible notes - which would...

They might turn their debt into convertible notes - which would be converted into equity at a given trigger point. Essentially it would dilute existing holders IF it happened. I think the article is very important for the introduction of the "Sons of Gwalia" claim....it reinforces that the banks position would be even WORSE from a negative response......indeed the bank is held by the financial short and curlies.....

The only issue I have concern with are there other "sons of gwalia" type issues that could COMPROMISE the SP - clauses that WE would not have the experience to know about that might throw a curved ball into the game.

I think the lesson from the article is that yes the banks will in all likelihood be expected to comply as they are unsecured - but be prepared for any curved balls out of left field - ie do not buy on blind optimism......I wish I could practice what I preach though.....