I have no problem with preferred shares being redeemed and retired at some point. That would be a normal business decision that could make sense under many sets of economic conditions, especially in a falling interest rate environment. All investors know this. I would celebrate a liquidation @ par at some point since my holding costs are WAY below that threshold.
That would be a business decision. What I am outraged over is the possibility that all preferred shares could be cancelled at par so that new preferred shares can be issued in a NEW COMPANY that goes to new investors that put up the money for recapitalization via some backroom deal between Treasury and litigants.
If approximately one third of the recap is only going to pay off original preferred investors and serves no role in recapitalizing reserves, why do it? Other than to take over control of the company, in this case using political vigorish and crony capitalism of the basest sort?
I am concerned. It is not an allegation, just a concern at this point. And all just my opinion.
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