Large Green,
By that definition of equity, the LTWs would be determined to be claims. The LTW warrants have no conversion price in the warrant agreement.
From my knowledge, this translates into a "right to convert" since there is no cash outlay to convert the LTWs to common stock.
Thus, on its face, it seems like the LTWs actually fit the B/K court's definition of a claim rather than equity.
Bluzie has pointed this out several times before (although you would need to dig back a year or so of posts to find the original posting of this discussion).
I'm sure that there are ways to "creatively interpret" the statute to force LTWs to look like equity (like Rosen has done in his post-trial briefs)," however Occam's razor (or Lex Parsimoniae if one prefers) suggests that the simplest approach ( i.e. a simple reading of the statute compared with the LTW agreement) suggests that these are, on their face, not equity securities by their very definition.
Of course, this assumes that logic prevails over obfuscation and willing misrepresentation of the agreement... clearly, this is not the case here... explaining why we need the judge to rule on the matter.
Best,
Jared
