Re: Change of control
Benisgone: If you put a bunch of money into a company that was otherwise bankrupt without your cash, wouldn't you want protection against someone else taking over the decision making process as to how you get that money back?
Remember, at the time, there were two competing offers, Dom and Pete groups. God forbid that Dom puts in $10m, then Pete takes over the boardroom, or vice versa. The penalty you highlighted was very fair in the circumstances of that investment.
And most importantly, if you think the PRH financing is some sort of sweetheart deal that is sure to make money, Dom will accept your investment to join him. When I read the terms last year, I liked them. I wrote to Dom and asked if I could invest in "PRH". He said yes, and I invested. I believe you can, too (unless they've circled the rest of their money and are now closed to other investors).