Why? This is nothing more than "eliminating" debt to the blind public hoping future investors don't see the sudden increase in shares. Seeing that there are preferred shares involved, the company is still beholden to the share holder of these shares. I'm assuming mr lenfest will be the shareholder of record as they are preferred. So instead of going through the SEC to increase amount of ordinary shares which causes immediate dilution, to raise money to pay off this debt, they do an exchange from debt to shares. Again assuming mr lenfest will hold these preferred shares, he now will get a 4 percent dividend on them. How much are you as ordinary shareholders getting??? WHAT?? no dividend?? No kidding. This exchange benefits the preferred shareholder, Mr Lenfest. Yes it helps to "dissolve" the debt on paper but dilution still occurs as more shares whether preferred or ordinary are added to the equation. Good Luck on your upcoming vote. Hope you find out the specifics before you applaud this move and vote for it. Knowledge is power.
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