AMD's Large Debt Mounting Up Fast
 

Using Convertible Senior Notes, AMD can receive usable cash now, but not have to worry about paying back its investors until its common stock reaches a predefined price. In this case, AMD set the conversion point to be $42.12 USD per share but its current price is roughly $14. In the catastrophic event that AMD goes bankrupt, Convertible Senior Notes take priority over other debts and thus investors are guaranteed the return of their money.

http://www.dailytech.com/article.aspx?newsid=7036