> Unless of course they are going to be worth something
It's possible. Wouldn't bet my life on it tho. Actually I wouldn't put any money into the common at this point; the people doing the actual work this year -- the lawyers -- are getting paid in cash of course.
$5 is an unimaginable recovery at this point given the 30c earnings for the year we'll be lucky to book -- that's a 6% yield if paid out. The market settling on a 15% yield implies a $2 price, no more, and we'll only see that if the company's book stops imploding and we get some real recovery in the sector.
At this point i don't consider the preferred any less risky than the common, but at least I don't see them getting any more diluted and the dividends are accruing while we wait for the other shoes to drop this year and next.