Box Ships Inc (TEUFF)

[Blizzld]

Their cash account is subject to a bank sweep (see release on debt workouts). When this happens they might not have access to cash flow.

But seeing that you are on top of this stuff , my personal opinion is that the 1st half was really dicey, especially the first few months, and that much cash was burned hence the collapse. But then when things started to look a bit brighter they felt if they could just get by a few more months as things turned they can survive. Banks seem to be playing along (maybe no choice) but gave them a year. So the notes were a last ditch effort to survive when their cash was being swept by the bank.

What could happen here is they have to sell a ship or two to take down the loan balance over time. Or perhaps since Paragon has 3 new ships on order but sold their other ships they pull off some merger or something there could be numerous different catalysts but you are correct in that this is high risk with dilutive shares and anyone's guess.