If Clearwire is unable to repay the PIK Debenture during this 30 day period, it would be entitled to convert the principal amount and accrued interest on the PIK Debenture into a note on terms comparable to the 2015 Senior Secured Notes previously repaid, having a maturity of December 1, 2015.
United supporters have protested against the club's owners because of the debt they've added to the team, but repaying the PIK facility will reduce financial pressure on the club, widely considered the world's most valuable sports franchise.
But as PIK loans written in 2006 and 2007 begin to term out over the next few years, investors in these instruments may suffer the same fate as investors in negative amortization subprime loans.