One never knows; couldn't Sarvis have surrendered all his SHOM common stock as payment for his keeping all interests in Encore, while keeping his preferred shares in the new merged entity (sorta like "greenmail")? Nothing is ever as absolutely impossible as we non-lawyers like to think.
'stock_peeker'
ps> I remain optimistic longterm though I still doubt it will do the explosive move to the upside when "more good news" is disclosed.