Given the following options there should be no difference in value to the holder - The value will be based on future earnings/outlook as it always has:

Using 1.35 \$ per share original purchase - say 1000 shares

1) Sell Now - Sell at 3.32 - Realize a gain of \$1 970 - Give up rights by doing this

2) Sell the rights when they trade freely: Based on previous post sell them for \$1.19 - Get \$1 190 - reduce your average cost base (ACB) to 1.35 - 1.19 or 16 Cents.  Stock is trading \$2.11 (previous post) so gain is \$1 950

3) Exercise Rights: Buy 1388 shares at 1.25 Each for \$1 735 - New ACB is

(1350 + 1735) / 2388 shares = \$1.29

\$2.11 - \$1.29 = \$0.82 times 2388 shares = \$1 960 gain

i.e. no difference in the 3 scenarios

I think most arent looking at the very positive impact the debt restructuring will have

They paid 47 Million in interest in fiscal 2011 - With the restructuring they will pay 350 * 7.5% or 26 Million ie. a reduction of 20 Million in interest annually

In an up market their EV to EBITDA runs 7 to 8 times so 20 * 7 = 140 Million in additional equity value / 240 million shares means the debt restructuring post rights conversion is worth an additional \$0.58 per share.