But the note holder is also a company insider. There will be no negotiation, that's all a bunch of BS propagated by no less than someone speaking for the company on the radio.
There will be no "short squeeze". Short squeezes are extremely rare in penny stocks. Usually when they do occur, it's because a small group of insiders controls the stock's float, and manipulates a squeeze by promoting the stock to create demand, and then cutting off the supply of stock to the market, squeezing any MMs who sold naked into that demand.
Which is exactly what is happening here.
Opinions posted by me are just that, my opinion.
This is in no way a suggestion to buy or sell any security.
Consult your own financial advisors for investment advice.