Friday, April 02, 2021 12:43:09 PM
If company is worthless they will take all the cash they can get and convert everything ASAP then sell as fast as possible. They will not recover all the debt this way.
Small chunks allows the business to survive and get a lot more money.
Both Walmart and Amazon did this with Plug Power and both companies made tons of money off that. Of course on a much larger scale. I believe Amazon loaned them millions 1st then walmart both had options to buy shares cheap for instead of taking the money. When I saw those deals go in place I want to say late 2017 early 2018. I was like are two giants fighting over this little baby company buy buy buy. It was a good call.
Not saying this is the next plug power, but its not worthless and debt holder won't convert all at once and crash the stock after all it their money too.
Also they can choose to not convert. Hope this helps
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