Thanks Familymang - I have heard that before but all I see is in the Prayer for relief is a conversion of the existing Senior preference but it is not clear if it just means the initial $ 1 billion or the liquidation preference before the 3rd Amendment. If you look at Paragraphs 116,122,136,144,151 and Prayer for the relief you will see over and over that the Plaintiffs are seeking that the NWS and the UST liquidation preference be set aside.
Here is the link for the Collins Complaint before Judge Ellison: