The preferred stock will recieve the full payout of $1000 for PQ, and $25 for KQ before commons see anything. I stand by that fact, as detailed in the prospectus, 100%. A 'settlement' does not mean the preferreds settle with the commons. It means a certain sum is awarded to the WMI estate to cover all classes.
There are 3.5 Billion dollars due to PQ/KQ. Possibly 3.9 billion on top of that due to Caymans.
If there is a settlement for say 10 billion, and the caymmans are JPM's problem; 3.5 billion will go to pay off the preferreds, 6.5 billion to commons resulting in a $3.82 pps based on the 1.7 billion outstanding shares.
Of course, a settlement for 20 billion + would result in a better outcome for commons as they would recieve enough to surpass the current $8 threshold.
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