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  • incomestream58 incomestream58 May 31, 2009 10:09 PM Flag

    Suspended div pmt

    For how long can they hold back
    without declaring bankruptcy?

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    • "If and whenever dividends on any Series A Preferred Shares or any series or class of parity stock shall be in arrears for six or more quarterly periods (whether or not consecutive), the number of directors then constituting our board of directors shall be increased by two and the holders of such Series A Preferred Shares (voting together as a single class with all other parity stock of any other class or series which is entitled to similar voting rights) will be entitled to vote for the election of the two additional directors at any annual meeting of shareholders or at a special meeting of the holders of the Series A Preferred Shares and of any other voting preferred stock called for that purpose. We must call such special meeting upon the request of the holders of record of 10% or more of the Series A Preferred Shares."

      From the prospectus. Since they own the majority of pfd as well, they get to appoint bd members and we are out of luck. Div can be suspended indefinitely until liquidation or IPO of company.