Convertible Debentures get converted into shares, even if they contain an early repayment option.
Many Convertible Debentures contain a penalty if the borrower repay them instead of converting them.
When a Debenture includes a repayment clause, the usual cheerleader will always claim that the Debenture will be repaid early, so no dilution will occur, even as the company has no revenues, and thus cannot possibly find the money to repay the Debenture from its nonexistent cash flow revenues.
Most of the money obtained from toxic loans end up being wasted, because they never generate enough sales to repay themselves. The money is often used by the company officers to pay themselves lavish wages for a sh!tty job
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