RE: RE: RE: Dominion preferred stock "I think they will be forced to pay the accumulated interest on the preferred. "
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32039969&l=0&r=0&s=DOM.UN&t=LIST#6UCFHhryMu1mJ88v.99
1st - Perferred (capital stock) pay Dividend (Perferred are not Common, but are recorded in the equity section as part of the companies capitalization structure).
2nd - Interest on debt is to be paid prior to dividends on capital stock
3rd - DMN Income Trust has not received an interest payment from the operating company for a number of years (My understanding).
While the trust has "Forgiven" interest payments (hope I'm using the correct words) for the last couple of years, prior to that, it was required, unpaid and still outstanding (from what I understand, verify for yourself).
Again, my thought is that the Trust is into it up to the oporating companies head and well, the debt obligations wipe out the oporating company. So, my perspective is the trust has 100% through the debt. If it don't, and if the perferred end up with any form of residual value I'll be at the AGM once again standing up and asking the directors for clarification and then looking to the outside auditors for clarification. I'll ask these questions durring the DMN Trust AGM so as they are recorded in the minutes. If the Directors / Management and other (yes big conflicts of interest exist due to overlap of directors in both the oporating and trust, all owning the Perferred shares) get something from the Perferred and they are the ones that have "Forgiven" the interest payments then I see an ongoing conflict of interest that has resulted in the lining of pockets. They would have from my perspective breached fudituary duties of directors in forgiving the interest these last couple years. Now, I'm not a lawyer or anything so, I'd have to look into it more but I tell you, I'd be looking into it if the Perferred end up getting a big fat payout of any sort.
Yes, a middle ground has to be found.... or something has to be worked out but in the end, I think a clear accounting of the books are in order that lays out just how much "Equity" is left in that company to allocate to the Perferred after 100% of the debt and unpaid interest is accounted for (including the "Forgiven" interest). This "Trust" is a public company traded on the TSX.