Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Allen Furlan who wrote (1410)	7/13/2002 4:42:52 PM
From: Harpo	Read Replies (1) of 1438

I think that you have indirectly answered your own question. <<<Eventually a floorless convertible death spiral has to end, but how?>>> I think "death" is the key word here. <<<The corporation should not cease to be viable if it is a profitable enterprise.>>> "If" is the big word in this sentence. This type of financing is usually unnessary if a company is profitable, it's more of a last resort when all else has failed. So all you are really talking about here are remaining assets when debtholders carve up the carcass. Most of the "death spirals" I have followed were such dubious enterprises to begin with, or failed so completely, that there was little left for anyone. Not to say that there is no opportunity in the deeply discounted debt in some failed companies, but that is out of my league. regards, H

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