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The preferred investors' interests are counter to those of common stockholders.
Unsecured creditors will get about 10percentt of their claims and common stockholders will receive nothing.
Archives|MARLIN-ROCKWELL RIGHTS.; Common Stockholders May Buy New Issue at $15 a Share.
MARLIN-ROCKWELL RIGHTS.; Common Stockholders May Buy New Issue at $15 a Share.
Lehman's return on common stockholders' equity, a measure of profitability, fell about 16percentto8.6percentcent for the quarter.
Such borrowings provide leverage to the funds, letting them generate slightly higher yields for their common stockholders.
If the companies were to retire the preferred shares, their common stockholders would lose out on the extra income generated by the preferred share structure.
That was because any losses would have to first wipe out common stockholders before the bank could stop paying dividends on preferred shares.
Under the out-of-court proposal, existing common stockholders would receive 5percentt of the equity in the company, and preferred stockholders would receive 10percentt.
Closed-end funds that issue auction-rate preferred shares do so to increase the yield that they pay to their common stockholders.
The board also declared a special dividend of AT&T Wireless common stock to AT&T common stockholders of record on June 22, payable with the redemption.
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