It is intuitive.
W2007 Grace Acquisition will be left with a pile of cash. In order for GS, directly or indirectly, to take the cash out, everything above common equity on the right side of the balance sheet must be resolved.
Why will preferred stockholders will be unscrewed? The sister company not only gets 58.8 percent of the accrued but unpaid dividends but also the liquidation value of the shares it holds.
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International