In laymans terms..., page-10

A few months back the MD mentioned that in a TO recommended by the board the KBLGA notes converted to KBL shares on a 1-1 basis. They are due for repayment in Feb 2017. I would expect the term to be extended for another year and the TO provision to be changed to be paid out in full. As a noteholder, I was not aware that a TO could force me to accept cents in the dollar for my notes until the MD drew this to my attention.

I regard my shareholding as insurance against a loss on the notes if a TO occurs. I would not expect the noteholders to vote to extend the due date of the notes without a change to the TO provision.

Such changes must be passed by both the shareholders and noteholders. Historically the noteholders have supported the shareholders as most were originally shareholders who chipped in to fund KBL a few years ago.

DYOR