It looks like it was in the agreement on July 20 that was made a day before the Zapata LOI announcement:
"the conversion price for the September 2012 Note was reduced from $1.09 to $0.19 per share for up to $7,000,000 of the obligations thereunder, DMRJ agreed to convert $7,000,000 of the principal under the September 2012 Note prior to the consummation of the Zapata Acquisition, and the remaining conversion rights under the September 2012 Note and the February 2013 Note were waived;"
So it looks legit after all. That is also why they had to take that $9M charge since the stock was trading at $0.44 and they set the conversion price at $0.19.