At 10 cents on the dollar, I like the preferreds over the common. The ride has been fun up to this point, as Sugarman et al. really seem to be manuevering and fighting as tactfully as possible. The significant 4th quarter sharebuyback notwithstanding, I just cant see the company issuing new debt and doing other financing without having to include common stock dilution. I think that last quarter's buyback was cagey and served the purpose of putting a bottom on the common with the purpose of eventually issuing a convertible debt offering or something that includes sizable dilution, but at strike prices that are higher than they would be if the company did not take 29 million shares out of the float. Just my speculation but if this were true I just like the preferreds with ten bagger upside and getting paid currently to wait...fwiw
Bondholders have a greater potential for recovering their losses than stockholders, because bonds represent the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Stockholders own the company, and take greater risk.