What is the difference between a busted convertible and a distressed convertible?

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When the price of the underlying stock is very far below the conversion price, the convertible is said to be a busted convertible. A distressed convertible can be viewed as a special type of busted convertible where the price of the underlying stock has fallen so far below the conversion price that it is likely that the issuer will be forced into bankruptcy. Thus, the difference between
a busted convertible and a distressed convertible is one of degree. Both are below the conversion price but a distress convertible is the only convertible that is in imminent danger of bankruptcy.

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