The bonds were quoted at 90 offer Friday - I don't know if any would actually come out at that price. Would think the Co's BK plan, which should be filed with the court within a few days, would detail their proposal to satisfy the bonds. Whether they pay cash, new securities or a combo, the BK court's job is to ensure that bondholders get full value in interest and principal before the shareholders get a nickel.
By the same token, while I haven't been able to get a definitive answer on whether preferred dividends accrue while the Co is in Chapt 11, I don't see how the preffereds can legitimately get "aced out" of some dividends while the common shareholders escape unscathed.
"while I haven't been able to get a definitive answer on whether preferred dividends accrue while the Co is in Chapt 11"
It should be indicated when management files it's reorganization plan in a few weeks. What I don't know is whether not accruing during BK implys "impairment", I would assume yes but I don't know since the contract is void at this point.