Replies to post #389 on Vineyard National Bank Preferred (fka VNBAQ)

[pkripper]

I am not sure. I am not in so I didn't do DD. As far as I know it has to do with the debt ratio. I do know, when a company files for bankruptcy, its stock and bondholders essentially get in line. The first investors to be repaid are secured debt holders, then senior bond investors, followed by subordinated debt holders. Preferred shareholders are next, and lastly, holders of common stock.In a bankruptcy, preferred shares are usually worthless, much like shares of common stock. Unless it is a mega company like GM and I do not know if they got anything.