You make no sense. How can you "demote" PQ to common while KQ remains above the "common" class? Both PQ and KQ are in the SAME CLASS, ie PREFERRED, which is above common.
By converting PQ to common, you essentially dilute the commons at the same time change the percentages owned by the entities thus risking the NOLs and tax refunds due to WMI. This would violate the Court order on exceeding/decreasing the 4.xx% owned by institutions/entities.
Each tier of WMI stock will be treated in their respective classes. The purpose of Bankruptcy is to make each class "WHOLE."
If PQ gets converted, rest assured KQ will get converted as well despite what the prospectus says.
The Plan required to be filed within the WMI exclusivity period solicited to creditors, if accepted, will dictate what happens to preferreds/common, etc.
PQ has the best risk/reward ratio, hands down, (not to mention in the event of re-organization, PQ trumps KQ in regards to interest at the rate of 7.75%). KQ is for the "penny player" mentality - great for trading - they see "cheap," but NOT "value."
In the end, if all goes well (and depending on the amount of shares you have), it does not matter which one you have as the end will result in more than what you originally had in your account.
The above is my opinion.
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