InterCloud Systems Inc. (ICLD)

[OShagHennessy]

Munimi is partially correct. The exchanging of Munro's and Durfee's loans for preferred shares is bad, but not because they anticipate bankruptcy. If that was true, they'd be better off holding the bonds.

The REAL reason they exchanged the notes for preferred shares is to get the "special voting rights" mentioned in the PR. This will allow them to approve another RS and / or increase the AS. Both of these events would be bad for current shareholders.

Remember when some of the posters on this forum (e.g., Shorsky) argued that RS has no effect on shareholder's equity? LOL!!!