Pref A, restructuring, etc A decision from the judge is expected soon. If the judge OKs the restructuring (either as is, or with minor modifications that don't require another vote), that's the end of the story. All series of preferred shares will turn into exactly 12.5 times as much as a common share.
Investors will have had their chance to protest the deal, and either (common shares, preferred shares, MTNs) they decided not to hire a lawyer to make their case, or (convertible debentures) they got a slightly better deal and abandoned their case, or (the banks) in this scenario they made their case and lost.
If the judge rejects the deal (or imposes complicated enough conditions that the deal can't go through for several months), Yellow Media will have a choice. Should they...
a) Leave the Preferred A shares as-is. and be forced to pay an unnecessary $250 million?
b) Convert Preferred A (and probably B) into a bit more than 12.5 common shares as explicitly allowed in the prospectus?
For a company that is in deep financial trouble because they can't pay all of their debts when they come due, this isn't a difficult decision. There's been a lot of noise about this question recently, but nobody has given any good reason why a company in financial trouble should pay $250 million that it has no need to pay.