Replies to post #285 on EOS Preferred Corp Series D Pfd (fka EOSPN)

[MJON]

So it sounds like its just a matter of time before something happens. Why do you think they are trading at a level that is a 50% return to when they are redeemed ( more than that if you include dividends to keep reit status)? It sounds like they are likely to be redeemed in any circumstance. Thanks for your response.

[Rockyp_cigar]

EOSPN is a subsidiary of Aurora Bank. Aurora bank owns the common shares of EOSPN REIT structure. Lehman bankruptcy estate owns the common shares of Aurora bank.

My concern with EOSPN is non-cumulative nature. The delay and other lawyer games could be used to justify non-payment of the dividend. For example(and I have no proof) what if Mr. Winnans was told to go slow with the OCC, resulting in no decision on the dividend or non-timely decision from OCC....thus the non-payment benefit accrues to the common and since they have to payout 90% to keep their REIT strucuture, in Dec/Jan , they payout a dividend and and great share of it goes to common because of the 90% rule and the previously missed dividend thats still on the balance sheet.

They could also stuff it with Assets that don't generate sufficient income to make a full annual payment on EOSPN. Mean while the extracted cash is at Aurora. I am concerned that they will lawyer up and play games. Can they liquidate Aurora and not EOSPN? What if they distribute the common shares of EOSPN to the creditors in the Lehman BK case (pro-rata).

The fact that Winnans has gone dark is another concern.