If push comes to shove in 2012, management will change that story on a dime and they will pursue what is in the company's economic interest.
If Yellow is running short on cash in 2012, and management knows that doing nothing lets you get rid of 80%+ of the value of the preferreds, why would they pay hundreds of millions to redeem them for cash?
To me the preferred A and B are structurally flawed and above 20% of par would make excellent short candidates as long as stock stays below $2.
Why would they not redeem them for cash? If they screw the first set of preferred shareholders (especially the pr.a shares due at the end of 2012) they are in default will lose all credibility. Their ratings by DBRS and S&P would be affected. So they will potentially incur hundreds of millions in additional borrowing costs in the future if they do not pay par value to the preferred shareholders. Their ability to do business in the future (assuming they have a future) would be impaired. That's how it seems to me.