ERHC Energy Inc (ERHE)

[midtieroil]

Who said it would be a voluntary bankruptcy? After reading some debenture agreements there is nothing forcing these debentures holders to convert into stock. They can demand cash if they feel the market won't support them selling millions of shares on the open market. Where would ERHC get the cash to pay? You might think Chrome will step up but they may or may not. They didn't step up in the rights offering. One default could trigger all of them to immediately come due. Then what?

At one time my posts about the debentures being toxic were considered ridiculous. I don't think anyone thinks they are ridiculous now.

This stock is now trading under a a third of a cent. I won't completely discount the possibility that ERHC won't make it. It's definitely a possibility that the debenture holders could force a bankruptcy and they would likely do so to protect their own interest if it ever came to that.

I still think ERHC will get a deal. But that is far from certain.