Regarding Pref As From the 2011 Annual report (dated Feb 9, 2012)
pg.36
Pursuant to the amendments to Yellow Media Inc.’s credit facility dated September 28, 2011, the Company has agreed not to exercise its right to redeem its Preferred Shares Series 1 for cash. However, the Company retains the right to exercise its exchange rights in respect of the Preferred Shares Series 1. Refer to “Cumulative Redeemable Preferred Shares” in this section.
pg. 37
Holders of the Series 1 Preferred Shares are entitled to receive fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of the Company in an amount equal to $1.0625 per Series 1 Preferred Share per annum, payable quarterly, yielding 4.25% per annum. At any time and from time to time on or after March 31, 2012 and prior to December 31, 2012, the Company may, at its option in accordance with the terms of the Series 1 Preferred Shares, exchange the outstanding Series 1 Preferred Shares, in whole or in part, into common shares of the Company at a conversion price equal to the greater of $2.00 and 95% of the then applicable weighted average trading price of the common shares. On and after December 31, 2012, a holder of Series 1 Preferred Shares may require the Company to redeem such Series 1 Preferred Shares for a cash price of $25.00 per Series 1 Preferred Share, together with any accrued and unpaid dividends up to but excluding the date fixed for redemption.
Pursuant to the amendments to Yellow Media Inc.’s credit facility dated September 28, 2011, the Company has agreed not to exercise its right to redeem its Series 1 Preferred Shares for cash. However, the Company retains the right to exercise its exchange rights in respect of the Series 1 Preferred Shares. Refer to “Cumulative Redeemable Preferred Shares” in this section for details.
I don't know why there is so much confusion related to this. It seems pretty clear to me!