It's Carl Grover's call on how to proceed, but it's pretty clear they're not going to repay him according to the original terms of the note. Carl needs to decide if he rolls the dice and lets the company continue to operate, or brings things to an end in December.
If he thinks his equity is $0, then he's playing to preserve as much value as possible on his $5 million secured note. It's a hard call by Carl Grover since he has so much tied up in this company. I'm glad I'm not in his shoes.
Every time the company makes a dividend payment on the preferreds, that's cash that's not going to Grover. That's got to burn.
News 
Market Data 
Discover 
