Muscle Pharm Corporation (MSLPQ)

[SLC-JD]

How is this bad news? An offer has been made to purchase securities, provided that the proceeds will be used to retire Drexler's debt before the notes come due. The BOD (not Drexler - presumably, he would not be able to vote on this issue due to his personal involvement) has over two weeks to accept or decline the offer. If the offer is rejected, Drexler can either convert his shares to satisfy the notes, renegotiate their terms, or declare default.

If Drexler converts, he holds the shares and solidifies the 46% stake he previously claimed as a noteholder, and effectively guarantees that he remains chairman/ceo. The shareholders get to suffer along with his continued leadership, and anyone following IH or SA gets to read GS/MC's continued bashing of his ineptitude.