The dividends on the Series A
Preferred Stock, Series B
Preferred Stock, Series C
Preferred Stock, Series D
Preferred Stock, Series I
Preferred Stock, Series J
Preferred Stock, Series K
Preferred Stock and Series L
Preferred Stock will be paid on November 10, 2014 to preferred shareholders of record on October 26, 2014.
The Taxpayer Relief Act of 1997 amended sections 351, 354, 355, 356 and 1036 of the Internal Revenue Code to, in general, treat certain
preferred stock as "property other than stock" for purposes of the specified sections.
354, 355 and 356 with the treatment of rights to acquire "nonqualified
preferred stock.
In addition, it appears the transferor could have avoided having the common stock included in his estate by subsequently transferring the retained
preferred stock or eliminating other rights prior to death.
2701 is aimed at preventing undervaluation of common stock given by a parent to his children, based on an excessive value ascribed to the
preferred stock retained by the parent.
Dividends on convertible
preferred stock are taken into account to determine income that's applicable to common stock.
The nonpayment of dividends on the senior
preferred stock for six or more quarters has caused a voting rights trigger event, which restricts the company's from refinancing debt or incurring additional indebtedness.
25% Redeemable Cumulative Convertible Perpetual
Preferred stock, Series C (the "Series C
Preferred Stock"), payable February 15, 2007, to shareholders of record at the close of business on February 5, 2007.
Pursuant to the tender offer, the company will first purchase shares of
preferred stock from all holders of "odd lots" of less than 100 shares who properly tendered all of their shares before the expiration date.
A Notice of Conversion has been mailed to shareholders of record of the
preferred stock as of the close of business on November 15, 2006.
Holders who hold shares of
Preferred Stock through a broker should contact their broker with regard to the redemption process because their shares will be redeemed in accordance with the broker's and DTCC's procedures.
In Fitch's view, many of the most common hybrid capital instruments replicate features of
preferred stock.
