W2007 Grace Acquisition I, Inc. (fka WGCBP)

[Enterprising Investor]

Sales price $1.925 billion.

Total assets were $1.469 billion at 3/31/14. Liabilities at $1.227 billion, while equity stood at $242 million.

4. PREFERRED STOCK OF SUBSIDIARY:

In May 2008, Grace Acquisition I ceased dividend payments to its preferred shareholders due to the “cash trap” under the GE Mortgage. As of March 31, 2014, Grace Acquisition I had $76,618,000 in accumulated, undeclared preferred stock dividends. Since at least six quarters of dividends on the Series B and C cumulative preferred stock are outstanding, the preferred shareholders are entitled to elect two members to the board of directors of Grace Acquisition I. Grace Acquisition I has attempted to hold three meetings to elect the new board members; however, at each meeting a quorum was not achieved and, therefore, an election did not occur.

Don't forget who gets 58.8 percent (or maybe more now) of those preferred dividends!