SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Zitel-ZITL What's Happening
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: CalculatedRisk who wrote (16616)7/16/1998 12:46:00 PM
From: E Rosen  Read Replies (1) of 18263
 
I was surprised that investors ponied up for the latest convertible debenture, and that the Cayman folks have not fully converted the first one, since bankruptcy seems inevitable and makes it very hard to reliably predict a profit.

One possible, speculative, explanation: Perhaps they believe that although Zitel will go bankrupt, Matridigm will have some degree of success. If they hold enough of the outstanding debt at the time of bankruptcy, they will end up the owners of the Matridigm stake. So, for a few million of unconverted debt they get holdings worth perhaps a few times that.

To indulge in conspiracy theory fantasizing for a moment, it is even possible that this is a way for management to hold on to the Matridigm stake while jettisoning the rest of the company and its stockholders.

Does this make any sense?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News