Junk equity deals can harm stock; while a 'floorless convertible' offering can help a struggling company, the floating conversion feature is potentially ruinous
Article Abstract:
Public companies unable to raise financing through traditional means have started turning to junk equity, also called floorless convertibles, but in the absence of sufficient regulatory restrictions issuers and their counsel should, if possible, avoid such securities and if such an offering is the only choice, use contractual restrictions to limit the securities' potential hazards. Possible short sales or stock-loan arrangements by the must be tightly restricted. A minimum holding period before the common shares can be registered and resold and the right to convert if the stock price falls below a certain point are also useful.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Contentious issues emerge from Title III cases; recent lawsuits underscore the lack of clarity in the standards to be applied in ADA actions
Article Abstract:
The lack of clarity in the latest rulings concerning the standards to be complied to comply with Title III of the Americans with Disabilities Act (ADA), which bars discrimination in places of public accommodation, is discussed. Businesses should know the ADA Accessibility Guidelines (ADAAG) for newly constructed buildings and alterations of existing ones.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
Wage & hour cases rise; class actions seeking overtime or other pay pose issues of complaint formality and compliance with FLSA's 'opt-in' feature
Article Abstract:
The increase in class action cases on wage issues based on the anti-retaliation provisions of the Fair Labor Standards Act of 1938 (FLSA) is discussed. Problems when combining an FLSA claim and a supplemental-jurisdiction state law claim are also discussed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Duties to mitigate vary state by state; while Texas' high court recently held a landlord to the duty, appellate decisions in New York, Pennsylvania ruled against it
- Abstracts: Ninth Circuit decisions focus on role of courts in reviewing plan administrators' decisions. Exhaustion of administrative remedies under qualified plan not required where plaintiff seeks to enforce statutory protections
- Abstracts: Behind lawyers' jokes. Does being a lawyer make one schizoid? A new book of conversations among lawyers suggests that for many, the answer is yes
- Abstracts: Direct ads may create liability dangers; consumer advertising by drug manufacturers has reopened the issue of expanded liability
- Abstracts: The Defense of Marriage Act: Congress' use of narrative in the debate over same-sex marriage. No promo homo: the sedimentation of antigay discourse and the channeling effect of judicial review