Sunedison Inc. (fka SUNEQ)

[hawkmd]

Wrong! SUNEQ bonds are convertible bonds not straight bonds, a very big difference. Those bonds will follow SUNEQ stock not the other way around, because they are convertible!!!. People need to do more research around the reality of SUNEQ unsecured CONVERTIBLE BONDS . Those bonds are attached to SUNEQ stock. Also their liquidity is close to none with specific buy and sell requirements. Only people with no knowledge about the bond markets keep bringing the issue around CONVERTIBLE BONDS. Please follow SUNEQ court documents and other reliable sources for information about Suneq shareholders outcome. Time is helping the shareholders of SUNEQ


http://www.investopedia.com/articles/bonds/08/convertible-financing.asp


The Disadvantages of Convertible Bonds

Many of the other disadvantages are similar to the disadvantages of using straight debt in general. To the corporation, convertible bonds entail significantly more risk of bank­ruptcy than preferred or common stocks. Furthermore, the shorter the maturity, the greater the risk. Finally, note that the use of fixed-income securities magnifies losses to the common stockholders whenever sales and earnings decline; this is the unfavorable aspect of financial leverage.