The bond holders won't get screwed here, the common holder is always the one to take it in the chin. You say Rufus wouldn't need small time investors if this were the case, but I think the opposite.
If everything was as it seems, I don't see the need to have shareholders, diluting interest and profits. Companies go public to use their shares as currency to enable future growth, and transfer wealth, usually to the company, not away from it, as is being suggested. It seems that Rufus has no problems finding people to pledge their assets, so I don't see what a measly $100M in shareholder equity is going to do. If any company was able to round up over $1 billion in assets each month, the last thing they would want to do is distribute that to shareholders.
I'm pretty sure the main purpose for these bonds is to attract investor interest for the common shares. I'm only thankful the street has more sense than Rufus.
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