Impac Mortgage Holdings (IMH)

[MWM]

Red flag 6: As of June 30, 2012, long-term debt had an unpaid principal balance of $70.5 million. They are:

Series B 9.375% redeemable preferred stock, 665,592 noncumulative shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively.
Series C 9.125% redeemable preferred stock, 1,405,086 noncumulative shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively.
If the company is bankrupt, preferred stockholders have higher priority than common stockholders. However, current stockholder equity is merely $30M, less than $70.5M, which left common stockholders nothing.