Having the company by the balls is a bit strong. The company has 2 years to pay off the debt if the investors haven't converted yet. So let's give the company 2 years and see what plays out. The HD switchover should hopefully mean good things for these guys. The debt holders in no way would want to screw the company and put them in to bankruptcy which would jeopardize the payback of their investment. Why wouldn't they want to see the company flourish and do well which would give them much bigger upside on their investment? Maybe you are right, they may have a first position, but why shouldn't they? They coughed up their money and took on more risk. Tell me what common shareholders hold a better position over debtholders in any company. There aren't. Debtholders come first, common shareholders are at the end.