GRZ's notes are convertable to shares at around $7.50. The note holders can ask for repayment on one day only in June 2012 and if they miss that day, they must wait until some date in 2021. If they demand repayment GRZ can redeem the note for the face value in either cash or shares or any proportion of those at the company's option. GRZ is current with the interest payments and has sufficient cash to fund the arbitration and pay the interest.

If a large number of note holders demanded repayment in June 2012 it could cause significant dilution if the company paid in stock, but it would not cause any loss of cash. It is in the best interest of the note holders to hang on and hope that the stock price goes over $7.50 on a settlement with Venezuela as they could make a significant profit from the sale of the shares. Alternatively GRZ could elect to pay them out in cash from the proceeds of the settlement.