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Ask Senior Partner Your Own Question
Senior Partner
Senior Partner, Solicitor
Category: Law
Satisfied Customers: 13326
Experience:  Solicitor with more than 30 years experience
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I have been issued loan stock in a company that is not going

Customer Question

I have been issued loan stock in a company that is not going anywhere and owes a lot to banks It is at par.
Can i convert
Submitted: 3 years ago.
Category: Law
Expert:  Senior Partner replied 3 years ago.
HI thanks for your question. This really depends upon the terms of the loan stock. Loan Stock is not always convertible and may only be convertible in specified circumstances. Why would you wish to convert if the company is in difficulty? IF you convert to equity then you rank after the unsecured creditors.

Senior Partner and 2 other Law Specialists are ready to help you
Customer: replied 3 years ago.

Was not allowed to go to the agm even as a guest so was peeved. Don't think am going to get my investment back anyway and felt I may have a bit more fun this way


John

Expert:  Senior Partner replied 3 years ago.
Well if you only have loan stock then they are not voting shares but it is surprising that you were not permitted at the ago even as guest if you are major investor. I would not bother to convert though unless it give you enough votes to exercise some control.