If I remember correctly, IMH stated three years ago that no dividend would ever again be dec akred on the preferreds, which essentially makes them worthless. This is being challenged in a new class action suit now that IMH is making moiney again.
On June 29, 2009, the Company filed Articles of Amendment to its charter with the State Department of Assessments and Taxation of Maryland to
modify the terms of each of its 9.375% Series B Cumulative Redeemable Preferred Stock and 9.125% Series C Cumulative Redeemable Preferred
Stock as follows:
• make dividends non-cumulative;
• eliminate the provisions prohibiting the payment of dividends on junior stock and prohibiting the purchase or redemption of junior or
parity stock if full cumulative dividends for all past dividend periods are not paid or declared and set apart for payment;
• eliminate any premiums payable upon the liquidation, dissolution or winding up of the Company;
• eliminate the provision prohibiting the Company from electing to redeem Preferred Stock prior to the fifth year anniversary of the
issuance of such Preferred Stock;
• eliminate the provision prohibiting the Company from redeeming less than all of the outstanding Preferred Stock if full cumulative
dividends for all past dividend periods have not been paid or declared and set apart for payment;
• eliminate the right of holders of Preferred Stock to elect two directors if dividends are in arrears for six quarterly periods; and
• eliminate the right of holders of Preferred Stock to consent to or approve the authorization or issuance of preferred stock senior to
the Preferred Stock.
Item 5.03. Amendments to Articles of Incorporation