Convertible Debt – Conversion In A Sale Of The Company
Feld Thoughts
SEPTEMBER 27, 2011
In this case, the convertible debt document doesn’t allow the debt to convert into anything, but at the same time mandates that upon a sale the debt must be paid off. So the lenders don’t see any of the upside on the acquisition. Our strong advice is to address how the debt will be handled in an acquisition in the documents.
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