do the holders get interest also when the dividend is eventually paid?? At what interest rate?
I assume so.
What is to stop HL from stopping the dividend on the preferred, causing the price to crash, then using the $$ that would have been paid on the dividend to buy back the preferred on the cheap. & then HL would never have to pay the dividend (since they would now own the preferred themselves).
I know that the preferred agreement probably outlaws this or else would probably violate the bank covenants.
I was just thinking online here, sorry. I mean no harm to the preferred holders.
Of course, HL could drop the dividend but it is cumulative, meaning the missed dividends would have to be paid to fill the legal obligation. HL could only buy your preferred if you let them purchase it from you. They can't confiscate it (legally). If the company declares bankruptcy, of course, then all bets are off. Debt holders would be paid off in order of seniority from the proceeds of any sale. I believe this is how it works; let me know if I am wrong.