Bebida Beverage Company (BBDA)

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It's not just stock. Basically, a convertible-debenture gives the creditor (Yorkville) more options as to how the loan can be repaid.

If they're issued convertibles, they can then cash in the shares at a pre-agreed price target which could net them a much higher profit if the company was successful. They also have the option of shorting the life out of the company (death spiral) to collect on the loan.

Bottom line is that, through the loan deal, Yorkville Advisors are the owners of a predetermined amount of convertibles belonging to in the NV state Bebida corporation. When the assets were transferred to Wyoming, that was a breach of contract and all the shenanigans that continued thereafter when Brian was the owner also incriminate him for his "fraudulent" (not yet proven) actions.

Basically, Yorkville Advisors have a good case if they can prove that Brian was aware of the debt and assets belonging to them.