Reread what I said about what happens at maturity. If the convertible note isn't converted into shares, because no more shares can be issued if the shares outstanding reaches the share authorized limit and the company refuses to do a reverse split so more shares can be printed, then the debt must either be paid off at maturity or the company simply defaults on the debt.
The convertible debt is not secured by collateral so there's nothing to repossess.
Upon default, the creditor can try to chase the debt in court or simply write off the debt as bad debt.
It's been so many years now since maturity that the issue has been resolved and the debt has been vaporized.
As for the expiration of ERHC's rights on the blocks, they're supposed to be expiring at the end of Sept for both the EEZ and the JDZ UNLESS the rights have been extended by the signing of the Total assignment agreement found redacted in the 400 page document. Whether you also need a PSC to extend the license is debatable.
So for all we know, the licenses have already been extended. This makes sense to me because Sao Tome wouldn't have started a bidding process on block 4 and risk confrontation by an international carat emptor. Instead, they would've waited until the end of Sept to pick up the expired licenses and start the bidding process at that time. I think they didn't do that because the license was already previously extended by Total.
In any event, we should know at the end of September if all of ERHC's assets have expired or not.
But it also makes sense that now that Shell has shown interest in Block 4, by being invited to a PSC on the block and with source oil believed to be in that block, that we'll likely have some sort of deal with Shell preceding an expiration, if there even is an expiration.
Krombacher
