Retraction I made a statement previously about the MD&A not including the accrued divy on a conversion. I was in error. I see what they have done with the wording and I missed it initially. They slipped in the word redemption price as meaning face plus accrued without actually stating flat out that face plus accrued divy's will be referred to as "Redemption price".
On or after June 30, 2012, Yellow Media Inc. may, at its option, redeem for cash the Series 2 shares, in whole or in part at a
decreasing premium until June 30, 2016 and at par thereafter plus accrued and unpaid dividends (Redemption price). Also, on
or after June 30, 2012, and prior to June 30, 2017, Yellow Media Inc. may, at its option, exchange the outstanding Series 2
shares, in whole or in part, into common shares of the Company until June 30, 2016 by dividing the Redemption price by the
greater of $2.00 and 95% of the then applicable weighted average trading price of the common shares. In addition, the Series 2
shares will be redeemable at a premium in cash or exchangeable at the option of Yellow Media Inc., in whole into common
shares of the Company on or after June 30, 2007 provided that any exchange prior to June 30, 2012 shall be limited to
circumstances in which the Series 2 shares are entitled to vote separately as a class or series by law or court order.
Poor wording in my book, but it is no surprise given the source. Since my position was based on their words, and now that I see what their words actually meant, I retract my previous statement that they are not going to convert the accrued dividend if and when they convert the preferred instrument.