JB,

In May 2007 the company adopted a Shareholder Rights Plan

"In connection with the adoption of the Plan by shareholders, the company issued One Right in respect of each Common Share of the company"... including convertible senior secured debentures.

My guess is that when a takeover bid is made The Board of Directors will make decision to give One Right for each Share with the conversion price for example $5. This in their opinion will kill the take over bid.

I hope someone can explain this much better and in plain English.