Labor Smart Inc (LTNC)

[DD2Gain]

From your own link:

The Note carries conversion privileges which, if exercised, would result in the issuance of shares of Labor Smart’s common stock, $0.001 par value.

A "privilege" is not a requirement. Command Center wants cash, but Schadel can't pay. That's why they are suing using bankruptcy proceedings. CCNI, a direct competitor, is literally TELLING Schadel to pay up or give up. That's pretty damned embarrassing.