Actually, looking at the complete excerpt I originally posted, the author does mention that Conway said some of the new notes were to pay off the old:
He [Conway] says ... that the proceeds from the notes issued by him were used to repay some of the old convertibles ...
The article about LIBE has a "Comments" section, so perhaps you should post counterpoints there.
I have noticed in the past with other articles on that site, including those about LIBE's former consultant Hemp, Inc, that when I've commented on points the author missed, those issues tend to be covered in future articles.