The typical arb (and probably the one set up by the hedge fund/journalist consortium) was to go long the LYONS and short the stock. This worked when the stock went to $1 and the LYONS went to 23. The maximum takeout price on the LYONS is around 65. The LYONS are currently trading around 53 which would include a discount for imputed interest to maturity. My bond quote is a littel stale, so please update and correct me. The company may have greater leverage now buying back stock rather than the bonds, if they so choose. This would make the possible put less poisonous. The short interest is actual an asset in reagrd to a poison put, because there is a "liability" for the short shares borrowed that would have to hbe bought in the event thatg the company did not declare bankruptcy. Another wild card possibility would be for the company to take advantage of the recent hysteria and start buying back their long term obligations. This would save them both interest costs plus enable them to take advantage of the more heaviliy discounted bonds (which eventually have to be paid). It would also put some pressure on S & P and Moodys to start reevaluating their low junk status.