They didn't have the cash on-hand to settle the debts at the time, that was why the notes were issued. The run last september allowed them to sell enough shares at a high enough share price to pay for the buyback of all subsequent dilution (which was an unavoidable part of converting the massive nuber of notes)... That works out perfectly, just doing the math (if that is what happened). So, that series of events just makes the most sense to me; call it a gut feeling but the evidence continues to point in a positive direction (once I accepted the dilution was a necessary hurdle which we may have only just now crossed).
There are any number of scenarios which are possible, I admit, but I'm satisfied to wait this one out, whether it touches .0001 first or not.
As far as the debt being settled or not, that's part of the news we're waiting for...
All IMHO, of course.