IMO it's very likely that folks who failed to voluntarily convert from preferred to common are beginning to bail on owning the preferred at all. Given that 2/3 of the preferred shares are converting, liquidity will move to the common, but not all of it. Folks will have to ask themselves why they are holding the preferred security, if it isn't for the increased liquidity the stock offers (because dividend preferences are just irrelevant for this issue).
My guess would be that the company may permit another conversion in 6 months or more, at a worse conversion rate than 0.9211 shrs. Good luck to all.
The cash is in euros, received from the sale of Portugal Telecom to Altice. Oi still has the PT bonds outstanding. Given Oi's credit profile, it makes sense to hold onto that liquidity, because if it were to settle the debt, who would lend to it at the moment? The good news---very good news--is that regardless of what happens to the real/euro exch rate, it has no net impact on the economics of Oi.
Coming up with cash? Are you serious? They have $166 million in cash sitting there since they did a convertible note placement months and months ago. CEO has been patiently pursuing the right deployment of this cash, and now he's done it, with lots left over. There isn't any financing needed here.
There's been a big bidder for shrs of PBIB at $1.50 for several weeks now. 52.7k shrs presently bid--and that's what they're showing! I'd bet there is a desire to build a real position in this one. They are certainly being patient.