CFW- More Risky after September 6th?
1.From the latest quarterly report:
"September 6, 2011, we are required to redeem the Preferred Stock for a redemption amount in cash equal to the stated value of the Preferred Stock, plus accrued cash and paid-in-kind dividends. If we do not redeem the Preferred Stock (including accrued cash and paid-in-kind dividends) for cash on September 6, 2011, the redemption value of the Preferred Stock will accrue interest at 1.5% per month until Cano has redeemed the Preferred Stock."
The principal amount of preferred stock is more or less $28.2 million.
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2.
I'm not sure you have the full picture...in addition to the preferred stock debt, they have the bank debt.... how on earth are they going to pay back the preferred shareholders before paying the bank debt?
3.
They are in default in their bank loan, and they are in default in their preferred shares.
Guess what happens later....
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