Looks at CNXS, CCTL, PKGM, and many others. They all got dilution while defunct. Pre existing note holders can absolutely convert. Company just can’t issue new notes. The key here is to hurry up and squash this last one.
I guess CD holders are the daily dilution. As soon as 3s are bought and 4s are seen, always 3s come back shortly for days. This is dilution nothing else.