What your theory is may be true in some instances,
But in this case it makes no sense. If the PPS WAS driven down to bust loose more shares and a discount by throwing in more shares to boot, it would make sense for those with the shares to reverse the action by driving the share price up to get more dollars per shares.
What I see is a "NOD" given to one of the groups to short it down, a few side deals negotiated, and then a bushell basket to catch all the shares sold short in exchange for "preferred" shares. The sell side has NOTHING to do with debtholders selling YET. The PPS is not attractive enough for the sale, all they are interested in is accumulation of shares and when enough has been reached then the PPS will increase.
3 things have been happening all along
1. enough shares will be accumulated to cover any of the short position and be profitable.
2. enough shares have been accumulated to cancel out the shares given in exchage for debt and have been cancelled out and converted to preferred.
3. the shares have become more valuable but the PR, SEC filings have not caught up with until everyone is in position.
If a company was going to restructure debt, it would just go BK and screw the shareholders, it would make no sense to screw the debtholders, because they are here to MAKE MONEY, and that means BUCKET LOADS OF MONEY.
If you listen to the last call, "cancelling" of shares was the key "code" said.
The debtholders are in control of this and in NO WAY will they be happy with the PPS at .0004 or lower and in no way will they be happy with the volume of "$$$$" that is present. Look for 20% of the O/S to trade in one day first. Then its off to the races.
The CEO has no obligation to provide a "play by Play" to nickle and dime flippers. The CEO in NO WAY will jeopardize true investors(lendors) with any rediculous tweets or emails for anyone posted on this board.
