First paragraph of the announcement: "Quickflix (ASX: QFX)...

First paragraph of the announcement:

"Quickflix (ASX: QFX) announces that it has reached in principle agreement with major studios with whom it has subscription video on demand “SVOD” licensing arrangements, to restructure existing commitments of in excess of $5 million into debt, to be repaid over three years. The agreement includes granting studios the option to convert debt to equity at a future point in time."

Creditors want their money so it's in their interest to keep the company as a going concern.  If they can't get it from repayment, they may seek to actively take control of the company.  Classic debt for equity swap strategy.  Whether or not that works with the preference shares sitting in the background is a question for the lawyers.