Yeah, but also don't forget that management is the one allocating the proceeds of these conversions. Who knows what they use it for? They may use it for their salaries while printing infinite amount of shares, and shareholders peril. Why would the close it down if they can still milk this cow more??
Your logic:
"If nothing good was going to happen, why bother? If there were no chance and bankruptcy was looming why keep beating your head against the wall, just close it down."
does not sit well with me, Sorry