"We have delivered a proxy statement for a special meeting of common stockholders to be held on June 23 seeking approval from the common stockholders on proposed amendments to the Preferred Stock terms. OUR BOARD OF DIRECTORS RECOMMENDS TO OUR COMMON STOCKHOLDERS THAT THE PROPOSED AMENDMENTS TO THE PREFERRED STOCK TERMS BE APPROVED SO THAT WE WILL BE ABLE TO USE OR PRESERVE CASH FOR OTHER PURPOSES IN CONNECTION WITH REBUILDING OUR BUSINESS. The proposed amendments include the following:
make future dividends, if any, non-cumulative; eliminate the restrictions on paying stock dividends on, or repurchasing, stock until preferred stock dividends are paid; eliminate the right of preferred stockholders to elect two directors if the Company does not pay dividends for six or more quarters; eliminate preferred stockholders' right to approve senior preferred stock; and eliminate the prohibition of redeeming less than all shares of preferred stock if preferred dividends are not paid.
The $25.00 liquidation preference for each series of Preferred Stock is not being modified and will remain whether the tender offer is successfully completed or not. If the holders of a majority of the outstanding shares of common stock do not approve the amendments to the Preferred Stock terms, then the tender offer will be terminated, even if 66 2/3% of the Preferred Stock is tendered. You should review the proxy statement for further information about the proposed amendments to the Preferred Stock terms. The special meeting is scheduled for June 23."