That HARDLY proves "Toxic" financing. Pretty standard stuff to have preferred shares convertable 1:10 for common.
Do the math, par value of the preferred shares was $20,000.00..........I DON'T know what the common was at that time, but the math is easy, if you have all the numbers.
Preferential treatment in liquidation ONLY means that the prefered is in line before the common, as long as it was NOT converted.
As for what matured in 2005, that was ANOTHER class of preferred, made clear in the first link, but Fisty left that out of her paste. THAT class of Preferred is non-voting, non-convertabel Five (5) year callable 8.25% cumulative interest at no par. In other words, similar to a bond. 8.25% interest for five years, unless the debt was paid off earlier.
Per the notes of link #2, ... 267,538 of 1,000,000 authorised (8.25% preferred)were issued.
Don't bait the bear........
