This morning on CNBC a hedge fund principal implied that the bond insurers AGO and MBI were still holding out to see if electric rates will be set higher by Puerto Rico
The stock price has plummeted in recent days that I believe is the result of its delisting from the NYSE. The stock price reflects the uncertainty that investors have about the stock's marketability now that it's traded over the counter.
You have not distorted the filing as some here have said. I went to the ISH website and saw for myself the wording in the SEC filing. I have pasted below the exact wording in the filing.
Because of the uncertainties associated with our ability to implement this plan, we expect that all of our $214 million of long-term debt will be classified as current in our consolidated balance sheet as of September 30, 2015. If we are unsuccessful in disposing of certain non-core assets by the milestones agreed to with our lenders, we would be in default under one or more of our credit facilities and all of our creditors would have the right to accelerate our debt. As a result of the matters described herein, including the uncertainty regarding our ability to execute the restructuring plan and our lenders’ ability to demand payment under our debt agreements, if we are unable to successfully mitigate these uncertainties, there would be substantial doubt about our ability to continue as a going concern.
nostrov3, As I read the prospectus I believe the holders of the preferreds may convert their shares if they want to, but it's not mandatory.
Except as described under “— Change of Control rights,” the Series A Preferred Units will not be subject to preemptive rights or be convertible into or exchangeable for any other securities or property at the option of the holder.
Change of Control Rights
Upon the occurrence of a Change of Control that occurs while Series A Preferred Units are outstanding, each holder of Series A Preferred Units will have the right to convert such number of Series A Preferred Units held by such holder on the Change of Control Conversion Date as such holder may elect into a number of our common units per Series A Preferred Unit to be converted equal to, subject to certain adjustments pursuant to our Second Amended and Restated Agreement of Limited Partnership (as amended, our “Partnership Agreement”), the lesser of:
the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any accumulated and unpaid distributions to the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series A Preferred Unit distribution payment and prior to the corresponding Series A Preferred Unit distribution payment date, in which case no additional amount for such accumulated and unpaid distribution will be included in this sum) by (ii) the average of the closing prices for our common units on the National Securities Exchange on which our common units are then listed or....
lasiskind, I own the preferred shares in a IRA account and therefore believe I will not face a tax event. becasue I'm only taxed as ordinary income when I make a withdrawal from the IRA.
Will the preferred shares be redeemed if NGLS is purchased by Targa Resources TRC?
On second thught, they may still declare a dividend tomorrow. They raised cash recently that was enough to cover another monthly distribution. They will also be under pressure to do so because of the investors who bought the additional preferred stock shares only months ago.
My gut feeling is that it will.
The dry bulk shipping industry has been in a funk. I really doubt if any class action on the part of the preferred stock holders will take place.
In my opinion management will resume the preferred as soon as it can. The suspension may only last a quarter or two depending on how they work out their bank loans.
Shareholder class action may be futile. Unless gross negligence can be proved management has nothing to worry about.
I'm going to pay the IRS taxes on the closing value which could be 1/4 what I paid for them. After 5 years all income and capital gains will be tax free.
As a cumulative preferred management can suspend the dividend so long as it denies common stock holders a dividend. Once common stock dividends begin all deferred preferred dividends due must be paid.
No earnings for the 3rd qtr have been announced yet. Management has the perogative of changing announcement dates as it deems necessary.
I forgot to add a very important fact. If you go to the ISH website and look at the date of last year's 3rd quarterearning's announcement it was November 5, 2014!
Friday's price decline was a classic panic. There was absolutely no basis for it. Management has been busy with the relocation of office from Mobile to New Orleans. If we assume the worst that a suspension of the dividend is immiment that won't be the end of the world for me. The dividend is cumulative and my investment in ISH is only 2% of my portfolio so a suspension isn't going to kill me.
The preferred has always been more volatile than the common stock. The preferred im my opinion it the more attractive investment.