1. yes, no new shares can be issued while delinquent.
2. OTC is not an exchange, it is a quotation system. If they do not file, they will be relagated to Pink sheet status. The SEC, after some period of time, will petition for revocation of the registration, but first there will be an administrative hearing to hear why they are delinquent and the plan to catch up asap. The administrative judge makes that determination.
3.By not being in compliance with SEC reporting requirements, they are in default of the terms of their converts, triggering default rates of interest and most likely other monetary penalties.
