RE: PREF. Dividends and CommonsThey can suspend, not cut the dividend on preferred shares. There would be no logical reason to do this since the payments would catch up with them eventually anyhow (short of a bankruptcy scenario).
I don't think commons would go up if dividend was suspended on prefs. Commons would go down because it would be interpreted as an indicator of deeper financial worries.
However, I think the point is kind of moot since such a dividend suspension is highly unlikely.
It is very unlikely that the bankers, with their guidance from the company in late Sept would have left YLO with a 250M revolving credit facility and the rights to pay off less senior MTNs ahead of $125 M of that line of credit if they feared bankruptcy.
Suspending dividends on series A & B could make some sense in a conversion-to-commons scenario but again, I think is unlikely.
Dividends on prefs can be more than paid simply with the cash saved by paying down almost 1B in debt this year.