RE: Preferred A Legal Claim..? Jireh, this is a CBCA reorganization. The preferreds voted for the deal. At this point all classes of interests have voted for the deal, and today even the banks are on board. The judge now has the authority to alter all previous agreements. The proposed reorg removes the requirement for a 30 day notice. The proposed reorg removes your right to ask for an exchange.
If for some bizarre reason the judge did not approve the reorg, then Yellow is between a rock and a hard place. Because in that situation both of these things are simultaneously true:
1) Preferreds will have a right to ask for a redemption.
2) Yellow is strictly prohibited from paying anything other than equity to any class of equity (either in at advance of maturity or at maturity) per terms of their credit agreement.
Whether Yellow redeemed or refused to redeem, either way it would be in breach of contract. I think Double is spot on correct saying that if the CBCA is not approved this will quickly move to bankruptcy, and in a bankruptcy equity is going to get a big fat ZERO.
So, you are paying attention to the wrong things at this stage, and be careful what you wish for because if you get it you will quickly find yourself owning nothing.