RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:AIM.PR.CI don't see the rational deferment of dividend payments on the preferreds as screwing anyone out of money their owed as the entity is burning cash, not paying dividends from any income earned. The dividends would simply be defered until such time as Aimia is in a better position to pay them. And any buyback, whether via NCIB or SIB, would be entirely voluntary. I'm not a lawyer, so if their legal advisors say it's not doable to buyback after putting the dividends on hold, then so be it. But stopping the preferred dividends now is highly sensible and in the interest of all stakeholders, including the preferreds.
This about it this way, after the Series 1 resets on 3/31/25 from 4.80% now to 7.25% (if the Canadian 5 year bond stays at current rate of 3.50%) then the today amount of preferred dividends being paid out will be $18.65 mil. annually (up from $12.6 mil. annually over the past few years before the recent resets). And while that's a very reasonable 7.9% of the face value of $236 mil. of the total preferreds outstanding, when you then add the 40% tax on top of that, the additional $7.46 mil. brings the total cash outlay to $26.11 mil., plus Aimia's $14 mil. in annual opco expenses = $40 mil. per year in cash burn.
So there's nothing nefarious in what I'm proposing, I think it's just common sense that you defer such expenses until you have the ability to pay them, out of income most preferably, but if not and it must come out of capital then only when capital is abundant (post asset sales).
It's potentially averting a liquidity crisis in the future that would screw everyone, common and preferreds.