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Hecla Mining Co. Message Board

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  • NeewollahCT NeewollahCT Aug 12, 2000 12:13 PM Flag

    HL has finally bottomed........

    do the holders get interest also when the
    dividend is eventually paid?? At what interest

    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

    I know that the preferred agreement probably
    outlaws this or else would probably violate the bank

    I was just thinking online here, sorry. I mean no
    harm to the preferred holders.

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    • 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.

5.97+0.20(+3.47%)4:02 PMEDT