Q, you are asserting that because there is a scenario described...

Q, you are asserting that because there is a scenario described by the terms where the company can elect to pay JGB in shares at <13c rather than cash that it will inevitably do so because it makes sense to do so.

Your assertion equates to suggesting that the company will deliberately choose the most expensive repayment option possible under these terms. That does not make sense in anyone's language but yours.

Companies will always try and reduce debt but they always try to do so by the least expensive option (i.e. from cashflow) where possible, not the most expensive.

You also neglect to mention that JGB cannot elect to convert its loan at that price (< 13c), that only the company can (rather than pay cash).

Cheers, Sharks.