I guess it was always going to happen but as a holder of the...

I guess it was always going to happen but as a holder of the FORESTS I am not happy anyway. One of the points of preference shares is that they have preference over the ordinary shares in the event of a company wind up. The problem is the fine print simply allows the directors to convert the preference shares into ordinary shares so that we all go down together.

From the directors and the rest of the shareholders point of view this is a good thing since it opens up the possibility that the company can raise extra capital without having the problem of the FORESTS acting like debt. Which goes to show that they were never debt in the first place - in the event the company gets into trouble (as it has) they act like ordinary shares. They only act like debt when the company is going well. This is a warning to all holders of hybrids - check the fine print.
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