ALWAYS beware of the guy in a fight who has NO BU
Post# of 15187
![](/assets/46931549/no_avatar_available_thumb.jpg)
I also still contend KBM has a lot more to lose and it gets steeper the longer this goes on. They must put up some semblance of a fight to ward off wanna bes but the linger it goes on, the more negative scrutiny and the more emboldened others become who may have limited resources but willing to take the risk and pile on.
While courts are crapshoots - the only real argument is "they did these deals before and agreed to the terms." As others pointed out - that does not hold wait legally. Along those lines - that is the VERY reason usury laws exist: those in dire straights have to make decisions they dont want to make to keep things going. Whether that is keeping their house or small buiness or keeping a public business going - the laws are there to keep them from being completely taken advantage of due to those dire straights. When the lenders become complicit to those dire straights (due to death spirals by shorting and taking out their leverage for typical financing or forcing complicit auditors as is suggested by the motions filed) it becomes a more linear arguments to show usury still applies to corporations.
As far as the BS argument by Locke that filing now and showing the assumed revenues would propel the stock to pennies and beyond - it is complete BS and he knows it. The resulting and IMMEDIATE conversions that would take place would NOT happen at $0.10. The stock would get crushed by overwhelming shorting to trivialize the buying from prospective investors. Under that scenario - new investors would "wait for a bottom" and then the damage would be done. Period. 5BB of AS chewed up in weeks. Further - the argument is about $42-43K but he conveniently ignores the penalties and interests that automatically get tacked on and accelerate the death spiral. So while his math would be legit in a static environment - convertible debt is dynamic and to use a chemical term - is a cataclysmic, runaway reaction which financially speaking - is a death spiral.
The bashers, iGlow, and the rest of the KBM / MM agents know this and that is why it is a never ending drumbeat to file- like they are going to guilt the company into it. That is also why an order to prevent them from converting would be important for shareholders.
![Like This Post](/images/thumb-up.png)
![Dislike This Post](/images/thumb-down.png)