Buzz, thanks for your responses.
I assume from the various answers that all are in agreement that DMRJ does not have a majority control at this time and that there is no circumstance other than a default in which they could have a majority control, since upon a buyout they only will have a majority vote - ie the converted shares would be bought out by the buyer.
Good point about the NOL in the case of a bankruptcy. I wonder though if there is a restructuring situation that can avoid loss of the NOL as well as loss of the IDIQ, while marginalizing the common shareholder. Hope not.
You asked whether they would convert everything if the BO price was $1.18 a share. You said you doubt it. That assumes that we shareholders retain our ownership. Is there any circumstance in which that same buyout price could go to DMRJ and it NOT go to shareholders? IF NOT then I don't see the problem. If there is, I'd like to know what that circumstance would be so I can attempt to assess the risk/likelihood of that happening.
This all began with a challenge from pumper-stumper for any longs here to find any other stock in which the creditor had a similar arrangement to have voting control over based on future converted shares. If he/she is right about it being highly unusual then I see it as somewhat concerning that the board is silent. I mean at least we should consider the possible implications of such a thing right? Wouldn't that be the prudent thing to do in the face of something so unusual with the stock one owns? That's what I was doing today. And as usual I get insulted(not by you) for trying to make a bit more sense of the investment than what 90% of everybody else here seems to feel a need for. I'm hopeful but too many convertible debenture companies have killed off the common shareholders by various tactics for ps's post to go completely ignored, at least for me.
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