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In the US creditors have liquidation preference in bankruptcy. You give that up if you convert to shares but gain some measure of control if the company is stil
by firebird84 6y ago
In the US creditors have liquidation preference in bankruptcy. You give that up if you convert to shares but gain some measure of control if the company is still solvent. It's a tradeoff I'm guessing. It's possible they have more to gain in bankruptcy in certain cases.