Replies to post #24293 on Box Ships Inc (TEUFF)

[munhoi]

common equity has priority over preferred unless the company goes BK and there is a liquidation only in that scenario would the preferred have priority of common under the cram down provisions of a BK

however there cannot be a BK because there are no senior debts to pay or covenants to be breached

so its how they get new financing for the company - toxic vs non toxic - that's where the risks are for the common and that is the real and only issue for the common which then goes to the BOD and their accountability to shareholders and why its so important to vote them out to get a shareholder friendly BOD & Mgmt will no self dealings or less self dealings going forwards

[munhoi]

its a difficult situation that's why the share price has been selling for essentially nothing for the last year and half.

but the BOD and CEO have choices and options - some that would benefit the common shareholders some that would hurt the common shareholder - the is documentation from the BOD that they indicated several times that the common shareholder is their utmost priority - yet they have breached that - that is why they have to go as they have violated their fiduciary responsibility to shareholders