Both. However, personally I think the preferred is definitely less risk. They're two different animals. The company could be bought out and the preferred could be kept in place by a new owner whereas the common shares would have to be purchased by a new owner. The preferred shares are redeemable at $25 each and would have priority over any payment to common shareholders. The bottom line is what is the value of this company. Also, today the SEC got involved with the whole process. See their filing SEC request for notice IMO this could be a very interesting play but it may take time to play out. You really need to do your own DD. I still wonder what other bidders might show up and what amount they would pay.
If you were thinking of buying any shares during BK, wouldn't you want to be the furthest up the food chain as you can get? The preferred will be paid before any common shares..its called the waterfall effect During a Bk..the sh$t runs downhill..I'm not saying buy or sell anything just want too let you know more about the BK rules..always do your own DD..never rely on a board or what someone else says.that's step one.. Glta involved here in Gmxrq or Gmxpq!
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