[wmf]

"Guarantee" is not an appropriate word here. In fact, such a high rate indicates that it's a very risky investment ("junk bonds" pay ~7.5%).

[ericlmtn]

article does say a 17.5% minimum, which makes me wonder

[wmf]

I'm guessing these are convertible so the lenders can take either 17.5% interest or convert to stock, whichever is worth more.