MannKind Corp. (MNKD)

[Jack4656]

Its in the financial disclosure/announcement - see my previous post. As part of BOA marketing the $100M notes to the investors, the investors wanted shares to hedge their loans (in case over the last 4 years MNKD went belly-up) - so MNKD agreed to lend 9M shares to BOA to lend-out for hedging purposes. MNKD did not go belly-up, and the SP is now at 6.0 and the shares were lent at 5.5, its essentially a near 0-hedge. BOA MUST return those shares at the same time the $100M notes are due, the are intricately linked, which means all the hedges are unraveled leaving with MNKD down $46M at today's price.