If the case it's should be a short term positive, maybe even long (but that idea is 5 years old?hmm). "could" is a key word...the company needs money....
An existing shareholder or friend of extends a line of credit to mslp while the other liquidates their stake....typically they want to achieve this at a better pps...
Essentially the idea is cash out and re leverage a position...wallah! Cashed out common and re-enter preferred....if the long term plan doesn't. Work.