fcpgalltheway-----preferred equity is superior to common equity in the waterfall------but this attorney is not talking about a future amended POR-----he is in fact not even talking about the old POR that was recently withdrawn----in that old POR all equity---both preferred and common are wiped out----and this POR has been withdrawn now------there is no way of finding out what the new amended POR will contain until that info is released in a public fashion through a court docket.
The preferred stock position is included in the liabilities in their 10Q, and as long as the assets after the sale to Dish etc. exceed the liabilities then the common equity would be in the money.
CURRENT LIABILITIES:
Accounts payable and accrued expenses
$ 54,850 $ 42,204
Deferred revenue
24,543 —
Deferred rent and other current liabilities
1,345 1,730
Accrued satellite performance incentives
12,626 19,350
Series A Cumulative Convertible Preferred Stock
90,000 —
Series B Cumulative Convertible Preferred Stock
318,500 —
Series A and Series B cumulative convertible preferred stock dividends payable
29,763 17,447
TerreStar-2 Purchase Money Credit Agreement including accrued interest, thereon
72,622 —
Total current liabilities
604,249 80,731
Accrued satellite performance incentives, net of current portion
7,255 8,062
Deferred revenue, net of current portion
40,000 —
Deferred rent and other long-term liabilities
960 1,429
Deferred income taxes
24,801 23,364
TerreStar Notes including contingent interest derivative and accrued interest, thereon (net of discount as of June 30, 2010 of $48,294 and as of December 31, 2009 of $48,528)
857,059 791,930
TerreStar Exchangeable Notes and accrued interest, thereon (net of discount as of June 30, 2010 of $66,667 and as of December 31, 2009 of $75,000)
108,623 94,729
TerreStar-2 Purchase Money Credit Agreement including contingent interest derivative and accrued interest, thereon
— 67,914
Total liabilities
1,642,947 1,068,159
Commitments and Contingencies
Series A Cumulative Convertible Preferred Stock ($0.01 par value, 450,000 shares authorized and 90,000 shares issued and outstanding at June 30, 2010 and December 31, 2009)
— 90,000
Series B Cumulative Convertible Preferred Stock ($0.01 par value, 500,000 shares authorized and 318,500 shares issued and outstanding at June 30, 2010 and December 31, 2009
AI
