Yeah- they have 6 more years. Their conversion price currently stands at $4. You said book value is $2.31. Why would they settle for a mandatory conversion that destroyed value for them?
You say "absent liquidating the business or giving up control, conversion will occur." That's a BIG detail you're skipping over.
I'll say what you said the opposite way and let me know what you think:
"Absent a mandatory conversion, the company will be liquidated or sold." Totally different outcome.
They will try their hardest to sell the company before the conversion. It's simple to buy a company in run-off- you simply discount the expected cash flows and you finance the purchase.