They haven't paid interest on the common since last March. They are adding deferred interest on the NOTE portion to the equity conversion. The dividend on the common stock was cancelled but they couldn't do that with the notes. They deferred two quarters of 0.2438 per IDS so 0.4876 (plus whatever interest rate they assign) will be added to the $7.50value of the note.
I read and listened carefully and hdecker is right in that Weaver made it really clear that IDS holders as of Feb. 8 get equity only -the deferred interest will be somehow reflected in the number/value of shares reissued. He did not say exactly, but it is clear there will be no interest payment to IDS holders.