have a look at page 28 of the latest financial report: https://www.aimia.com/content/dam/aimia ... tes-EN.pdfdaverobev wrote: ↑Nov 9th, 2017 11:42 amHmm, down 4 1/2% at the moment.
They have loads of cash. I don't get why they don't pay out the dividends they owe. I don't get this impairment thing. It is not 'their money' - it should be paid out to shareholders. Suspending ongoing dividends sure, that's fine, totally allowable.
Where do accumulated pref share divis fall in the case of bankruptcy? They are doing this presumably to keep the bondholders happy (ie, unpaid out accumulated divis would go to bondholders in bankruptcy rather than pref share holders?).
Ahead of the prefs are i) 200 million drawn from a bank line of credit (I believe used to pay the 2018 bonds) expiring 2020 and ii) 250 mil secured bonds expiring 2019. If AIM goes bankrupt now, the prefs will get nothing, and that includes the pref dividends, because these two items are ahead in seniority. However, if cash flow stays the same then the debt eventually gets paid off then the prefs are the next in line. This is why its important for AIM not to pay the common dividend, with so much uncertainty, they must conserve to service the debt until things get better. If bankruptcy happens well into the future (past 2020) then I believe the prefs could be made whole, as they are essentially the owners of AIM after paying off the bonds and line of credit.