The reason they agreed to exchange preferred shares for the debt is because the Creditors would not have been paid and if the creditors demanded payment DTII would have to declare bankruptcy.
The Preferred shares are convertible into common. There may be a waiting period,but when the waiting period is over the creditors will convert their shares and then sell on the open market. That's the only way they will get their loan money back. If they thought they would get their principal and interest they would have not agreed to a conversion. Might as well get interest till maturity and then get their principle. They knew it wouldn't happen.
DTII makes it sound it is great because they got rid of the debt.
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