Replies to post #25536 on Washington Mutual Preferred fka WAMPQ

[steved_45]

I was wrong. I thought I read that one of them should have been redeemed but that's not true. Big question to all: Has WaMu been declaring the pref's dividends knowing they couldn't pay them? If so we are entitled to back divy's. If not, sounds like no back divy's.


From the K's prospectus: My summary--Optional redemption by company on Sept 2011 with back dividends as long as they were declared and not paid.

We may not redeem the Series K Preferred Stock prior to the dividend payment date in September, 2011. On and after that date, we may, at our option, redeem the Series K Preferred Stock in whole or in part at any time, or from time to time, at a price of $1,000,000 per share (equivalent to $25 per depositary share) plus any declared and unpaid dividends.



From the P's prospectus: My summary--P's get paid in full w/declared but unpaid back dividends. No redemption date/no maturity,and holders have the right to convert to commons

Section 5. Liquidation. (a) In the event the Company voluntarily or involuntarily liquidates, dissolves or winds up, the Holders at the time shall be entitled to receive liquidating distributions in the amount of $1,000 per share of Series R Preferred Stock, plus an amount equal to any declared but unpaid dividends thereon to and including the date of such liquidation, out of assets legally available for distribution to the Company’s shareholders, before any distribution of assets is made to the holders of the Common Stock or any other Junior Securities. After payment of the full amount of such liquidating distributions, the Holders will not be entitled to any further participation in any distribution of assets by, and shall have no right or claim to any remaining assets of, the Company.

Section 6. Maturity. The Series R Preferred Stock shall be perpetual unless converted in accordance with these Articles of Amendment.

Section 7. Redemptions. The Series R Preferred Stock shall not be redeemable either at the Company’s option or at the option of Holders at any time.

Section 8. Right to Convert. Each Holder shall have the right, at such Holder’s option, to convert all or any portion of such Holder’s Series R Preferred Stock into shares of Common Stock at the Applicable Conversion Rate per share of Series R Preferred Stock (subject to the conversion procedures of Section 9 hereof) plus cash in lieu of fractional shares.

[HROLLER]

Correct....But the contract can be revised if the settlement agreement comes to that, ie. extended maturity date.