Yes and BK judges will always side with the majority, which in this case means that there will be new equity going to subordinated debt positions. Since the company can't afford to pay dividends on preferred stock, the only equity available to debt-holders is common stock. And since the company already has existing common stock there is no way in hell a BK court would allow for debt-holders to be thrown into the pool of current common stockholders. Therefore all equity must be wiped out to make room for the new equity.
Because the debt holders who are taking shares want to be the ONLY shareholders and do not want preferred shares to take priority claim to the assets. Therefore both the existing common and preferred must be wiped out an the only way that can be done is BK.
Sounds just like a post I made a few months ago...management conspiring with creditors to save their hind end at the expense of shareholders in some back room deal. That's why if BK laws are ever to be fair to owners, the BOD and top executive management should automatically be fired and replaced as part of a BK restructuring.
Whatever malfeasance he undertook, he seems to have done a lot for a lot of people. Nobody deserves to die in such a manner. On a related note, did anybody listen to those 911 calls? What kind of #$%$ do they hire for dispatchers...can you listen to what the callers are saying? People's lives are at stake put down the damn donut and listen.