Hit bottom only last minutes of trade.
I bought today, but honestly I still have big reservations regarding if this was smarter move than common.
I do not believe preferred stockholders will ever see another dividend anf if they do it will only be a very small one, to keep holder off getting voting rights.
Mhe... it's apples and bananas.
In my humble option, the Preferreds are a much much better deal than the common. Preferreds get an automatic 20% of net income while the common may get little or no dividends for a long long time as cash is needed to pay down debt. The common dividend in 2012 was about 26 cents if I recall correctly (about a 10% yield based on today's price) while the preferred dividend on the ADRs was 52 cents, a 124% yield based on today's price. The debt holders can demand dividend restrictions on the common while it's not so clear they can do so on the preferred since the dividend is required as part of the terms of the offering documents. Lets assume MTL turns a profit of $500 million in 2014 (not likely - just for illustration). Preferred holders will get a dividend of $100 million and the common will get nothing unless approved by the creditors. In an optimistic scenario, lets assume MTL really turns the corner and pays an unusually large dividend to the common shareholders. In this case, the Preferred holders will get the same dividend as the common since the terms of the offering provide that the dividend to the preferred cannot be less than the dividend to the common. These are the kickers that have me scratching my head as to why the preferred would ever sell at a discount to the common. Granted, the preferred is somewhat more illiquid due to the smaller number of shares traded but two key terms (guaranteed 20% of income and floor on the pref. dividend set at the dividend on the common) would seem to more than offset the liquidity issue.