You are exactly correct. There are a lot of moving parts. A lot of the value proposition requires that management make intelligent decisions with the frame of reference being the common shareholder as a priority. Then again, their fiduciary responsibility is first and foremost to the common shareholder. The capital structure at present is not sustainable, but you can say that about a lot of companies. The good news is that the company understands this and is proactively looking to refinance according to their annual report. Bondholders are calling for a restructuring, there is a difference:
http://www.ypg.com/annualreport2011/liquidity-and-capital-resources.php
The Company has begun evaluating alternatives to refinance maturities in 2012 and beyond. A broad range of alternatives will be considered and may involve the issuance of secured or unsecured debt, equity or other securities or other transactions. At this time, the Board of directors has decided to suspend the dividends on the outstanding series of preferred shares.
In connection with this review, the Board of directors of Yellow Media has established a committee of independent directors to serve as the Financing Committee of the Board (the “Financing Committee”) that will oversee this process with the objective of completing any transaction or transactions during the current fiscal year.
Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms
Refinancing is different from restructuring.
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring.