This quote is from amended form 8-k filed on December 9th. Pierson is talking about retiring 90% of the series a and series b convertible notes, which amount to about 200 million dollars. He is not talking about retiring 90% of the 1.4 billion in debt.
The effectiveness of the ratification is also conditioned on our retiring at least 90% of the aggregate outstanding principal amount of the 10.0% Series A Convertible Senior Secured Notes due 2015 (the "Series A Notes") and 10% Series B Convertible Senior Secured Notes due 2015 (the "Series B Notes") through any combination of the following options: (i) by converting to equity, (ii) by retiring through the proceeds of one or more equity offerings or (iii) by setting aside a sufficient amount of cash to redeem at maturity. Additionally, the ratification is conditioned on our making reasonable efforts to refinance our amended and restated credit agreement, including our ABL first-out delayed draw term loan facility and our ABL last-out term loan facility, on terms that are better taken as a whole than are currently in existence.
There can be no assurance that our employees will ratify the IBT Agreement or, if they do, that we will otherwise be able to satisfy the other conditions to its effectiveness, many of which are outside of our control. If the IBT Agreement is not ratified or the other conditions are not satisfied, we may be unable to restructure or refinance the portions of our debt which will mature in September of 2014 and March of 2015. See "-Liquidity Risks-We face significant liquidity challenges in the near term, which could adversely affect our financial condition." If we are unable to restructure or refinance our maturing debt, we will not have sufficient liquidity to repay the amounts owed. This would require us to restructure our entire capital structure, which would materially and adversely affect our financial condition and our ability to continue to operate our business in the ordinary course.
By Pierson saying "to continue to operate our business in the ordinary course", that's a nice way of saying we won't be able to continue to operate.
The vote no or yes simply comes down to, do you believe that they will still be open if the extension is voted down to make another "better" offer? My opinion- I'm not sure. They are creating 3 million shares of new stock to raise about 30 million in cash. Is that to help pay the 60 million ish they owe on Feb. 15th? Is that their plan b if this gets voted down- Scrape together the cash for that payment and get an extension in place before the September notes come do? Btw, there is NO arguing, they DON'T have the money to pay that bill, it's over 350 million. This is the highest of high stakes poker......