I believe the S&L’s of the world take on the financing of these fledgling companies under the pretense that the businesses are not going to succeed.  Thus their modus operandi is to extract as much as they can as quickly as they can to recoup their investment plus some handsome profit.  Whatever can continue to be bled out probably continues to get bled out.  But then all of the sudden a PTSC comes along and a momentous turn of events occurs, and suddenly the company is a viable entity with definitive potential for long-term success.  That probably translates into S&L exclaiming “Oh Sh___! - this thing is actually going to succeed, and now we have to figure out a way to clean up the debenture/warrant mess” (in order to let it run eventually).  I can almost hear it.

So perhaps these somewhat un-chartered waters are not what they were expecting to be in 4 years ago ---- it would not surprise me in the least.  There are probably not many easy ways to clean up the ‘toxic’ situation, but we seem to finally be clear of the shoals.