I am well aware of how it works! My point is that conversions have already happened, they will continue to happen, and the company will take on more toxic debt thanks to that huge five billion A/S. They have lots of room to dilute this straight into the ground. So yes, the shares are basically sitting there in an unissued form waiting to be dumped by way of toxic debt conversions, just as you have described.
If you want to argue that the shares don't exist yet and cannot simply be sold out of a box, I will agree with that. My point is they are using the process to create the shares, and they are devaluing current investors' stakes in doing so. Basically, the box of shares exists, it just requires a shell game of obtaining financing first in order to dump them on the market.
The "how" part of these shares getting to market did not seem to be in need of explanation. I assumed it was understood. The important thing is that they are putting out a lot of shares and no movies. Who in Hollywood would want to get involved in this stinking mess? Mario Kassar loved Carolco, and even he walked away from this because he saw no hope for it.
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