The exchange was 21 million shares for $21 million in debt, and the price at the time was about .31 so CHFI would have to take a huge write down on their assets. Roughly a $14m loss.
The stock of CHFI was at or over $2 when this deal was announced and it didn't react negatively.
The loan had two parts. $3 million due this month and $18.3million due "no earlier than January 2011". So it appears that CHFI would get their money quicker assuming they are allowed to sell the stock when they want.
I believe GFRE is going to do a reverse split and pursue listing on the Amex.
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