RE: Awaiting onereality's spin "what happens to the gain on conversion of $386 million, presumably non taxable because the pref shares are not debt instruments"
It does not matter how they received the capital...they received it. There was no gain at that time because they recorded an offsetting capital (equity) liability. If you eliminate the capital liability then you create a taxable capital gain. We are sort of getting down to the 101's of a Balance Sheet.