the common cannot get a dividend unless a dividend in excess iof 9.125% is paid to the preferreds first. why would anyone want the common as long as the preferreds are outstanding and par is greater than the equity in the firm. It will take 50 million dollars plus a premium to redeem the outstanding preferred, even with a tender for an exchange into common shares that is a 3 for 1 dilution.
this is not a factual statement. Only leverage the preferred shares have is the lawsuit...If it goes in their favor then they "might" make it out ok. If not then your 3 for 1 dilution does not make any sense. The company will have the upper hand and depending on where the pps of the common is....A 1 for 1 swap (or maybe less) would be a good deal.