The reason a company can find financing of the type Dutchess, among others, offers, is because the lender can profit no matter the outcome of the stock price. A cash poor enterprise can get an infusion, knowing that if it fails to generate the cash, it can pay back with equity. Dutchess, like other similar lenders, charges a modest coupon on it's debt, also payable in common stock.
It is naive to think one can wave a wad of money in their face and settle out of the debt at a discount. In reality, such a lender really never wants the debt paid off. Why? Because in addition to the modest return from the coupon, they can enhance their return significantly by doing conversions. Being hedged as they are, it would not surprise me if their overall returns are north of 25% per year. Nobody earning that kind of return on their money wants to be paid off early! Would you?
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