Posted On: 02/05/2013 6:44:22 PM
Post# of 16816
$BCAP's interest in $RIGH is in their convertible debt, not their share price. There are advantages in convertible debt ownership, which is always secure.
Aside from the rate of interest and the conversion ability, in the scenario where the creditor is owed money by the borrower, but the borrower can't/won't pay, the creditor can force bankruptcy restructuring.
In a pinksheet the restructuring proces is a R/S, followed by equity issuance by the creditor. The other alternative is for the creditor to seize the borrower's assets so they can establish their own shell + operating company.
The above are factors that initially attracted me to $BCAP. It makes investing / trading much safer, since I know the money will eventually come back to $BCAP without major complications, and consequently I know the stated assets are real and growing.
Aside from the rate of interest and the conversion ability, in the scenario where the creditor is owed money by the borrower, but the borrower can't/won't pay, the creditor can force bankruptcy restructuring.
In a pinksheet the restructuring proces is a R/S, followed by equity issuance by the creditor. The other alternative is for the creditor to seize the borrower's assets so they can establish their own shell + operating company.
The above are factors that initially attracted me to $BCAP. It makes investing / trading much safer, since I know the money will eventually come back to $BCAP without major complications, and consequently I know the stated assets are real and growing.
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