This excerpt taken from the HMPR 10-Q filed Nov 5, 2008.
As a result of the Gateway Merger, the Company will create two new series of preferred stock that will have rights that are senior to those of its common shareholders before the merger.
GFH has outstanding 23,266 shares of Series A Preferred Stock and 37,550 shares of Series B Non-Convertible Non-Cumulative Perpetual Preferred Stock. Pursuant to the Gateway Merger Agreement, the shares of Series A Preferred Stock and Series B Non-Convertible Non-Cumulative Perpetual Preferred Stock will, in each case, be exchanged for a newly-designated series of preferred stock of the Company, having substantially the same powers, designations, preferences, rights and qualifications, limitations and restrictions as the stock so converted. Each of the newly-designated series of preferred stock of the Company will be senior to its shares of common stock. As a result, the Company must make dividend payments on each series of the preferred stock before any dividends can be paid on its common stock and, in the event of its bankruptcy, dissolution or liquidation, the holders of each series of the preferred stock must be satisfied before any distributions can be made on its common stock. The Company will have the right to defer distributions on its preferred stock for any period of time, during which time no dividends may be paid on its common stock.