RE: RE: No 30 days notice before the Dec. lion_salomon, quote from the MD&A section that says the banks gave them relief from the terms of their credit agreement to repay maturities of *equity*. I don't believe you. You cannot show any citation of this claim. You are making it up.
The credit agreement he quoted is clear. No cash or property can be paid to any class of equity (e.g., the preferred shares). Only equity shares can be paid to equity. Payment of cash or property to equity is a clear unambiguous breach of contract. That gives the banks clear ammunition to force Yellow into a CCAA, to protect their rights, at which points recovery for all classes of equity would go to zero.
I actually think Yellow has done a decent job here of giving more value to equity than I thought they ever could. They have negotiated a delicate dance to have MTN holders surround and out-vote the bankers, because the bank debt is pari passu to MTNs, and the MTN holders represent the lion's share of what is due. You can be sure the bankers are furious about this, and they will seize on any legal technicality you hand them to force this to CCAA, where they surely get a better recovery.
Don't wish for Yellow to pay any cash to Series 1 Preferreds without understanding that you are initiating an action that will result in total destruction of all classes of equity.