Pref DIV Cut- RE-FI Ploy or Prelude? I can't believe they are suspending the cumulative pref DIVs.unheard of?
- Are they doing this as a ploy to negotiate a better term sheet for RE-FI?
- Or have they already decided to throw in the towel on the current capital structure (not a big deal for them, their options are worthless anyways), let the bond holders and banks force liquidation??
Div payments are at most 8-9M a quarter RIGHT? what are they doing here. just continue to right size the business. Cutting Pref DIVs do not make sense when ebitda is 51%, revs 1.3 B annualised.
Does this give creditors (I mean the MTN holders not us pref holders) less ammo??
PLEASE someone give us some historical comparables here. What other Cos have ever suspended cumulative DIVs?
Megablocks comes to mind, diluted the the stock to oblivion, but they didn't have any prefs