Replies to post #11105 on Encompass Holdings (ECMH)

[Sparks100]

Yes, it is debt reduction, but you left out a couple of steps.

Note Conversion = Dilution.
Debt is reduced because it is turned into converted stock so
each share is worth less (or worthless).

Why can't the debt be reduced without conversion?
Because there is no income to pay the notes off.