As to the question of whether the TPS can receive different treatment that is separate and apart from what the other preferreds get, the answer is yes. In fact, it has already happened. Under the current settlement agreement they are getting a 1.25% of par recovery as a floor, even if the other preferred classes receive nothing. If those guys get enough traction to bring the parties back to the table for a revised settlement, then they could just bargain for a higher floor amount than the current 1.25% and it would not mean that the other preferred classes would get to enjoy any additional benefits.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.