Originally Posted by
airdog
I don't know if the bondholders will go to court, but I think they would have a strong equitable argument that stock cannot be used to satisfy the debt. Who knows, however, what they'll do - they may let JO limp along.
I think the language may require that they accept stock based on the recent price, with no provision to account for a value drop caused by the the issuance of a ludicrous amount of new stock.
But I would sue him too...if I were going to get left holding the short end of that stick I would consider it fraud.