The SEC has no authority to extinguish debts. It files civil lawsuits against the debt holders so the civil action is between the two parties and not the third party note issuers.
These are not the first note holders to be sued and not the last. ENDV still owes them the money and still has to pay. If ENDV cannot pay they will be foreclosed on and possibly thrown into bankruptcy court. Either way the note holders have a senior claim on the assets so they get paid before any common stock holder gets a dime.
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