Mr Cooper Group Inc (COOP)

[jackson227]

If there is no buyout, there is NO WAY the preferreds will get full value. The only way they will get full value is if there is a buyout, which I still think will happen, or if they were to liquidate everything(not going to happen) and have enough $$ to pay the preferreds in full.

There is absolutely no guarantee that preferreds will be paid in full or even close to in full, if there is no buyout and WMI emerges from bankruptcy. When WMI emerges from bankruptcy, they could be paid at a rate chosen by the company as preferred shareholders have no voting rights at all. It says right in your link:

"Another benefit will appeal to those who like to be near the front of a line. If a company runs into trouble and seeks bankruptcy protection, holders of preferred shares take precedence over holders of common stock.




So while common stockholders often receive nothing if a company seeks bankruptcy protection, preferred shareholders may end up with a few cents on the dollar.





Of course, preferred stockholders still aren't at the front of the line -- that's where you'll find creditors, such as bondholders and even employees."

Don't get me wrong, I feel that preferreds are clearly the way to go, but there are certainly no guarantees, especially at face value.

If a buyout happens, everybody wins, but preferreds will win the most.