he forgets that yellow raised $250 million through the issuance of preferred a's and will soon need to pay that back....or does that logic only apply to unsecured creditors?

 

Preferred shares are equity, not debt.

 

The deal that Yellow Media made with Preferred A shareholders is spelled out in the prospectus.

 - Yellow Media will pay dividends that are almost like interest payments on a bond, and then pay back the $25 in a few years

 - But if things get bad, Yellow Media can suspend those dividends without going into default

 - Or they can exchange each $25 face value Preferred share for 12.5 common shares, which would only make sense in the unlikely event that things get so bad that Yellow Media's common shares trade for less than $2

 

When you bought Preferred A shares, you accepted this deal. Ideally, you read and understood the prospectus and decided the benefits outweighed the risks but in any case that is the deal that you accepted.