How is this a negative? Prior to this they could convert at a 25% discount to the market rate, so if the average market price for the last 15 trading days was .05, they would convert at .038. That is what causes the death spiral- they are flloorless convertibles. They are no longer floorless. The floor is now set at 05.

I can see your point if we were to see a large jump in price, then the conversion would still be at .05, so the positive is we won't go below .05, but it holds us back from going up either. However I think with the leak-out agreements, it would limit how quick they could sell. GC obviously negotiated this to help the Company- the toxics didn't volunteer this so I believe it is another way to buy time and keep the price stabilized while they are working things out with ESS. If and when they are able to pay down the toxics, they can renegotiate with them again. The worse fear all along has been a true death spiral below sub-penny and this all but eliminates this possibility.