Hybrid Financing: Orient Airlines' Common Stock

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• Hybrid Financing

  146822 Hybrid Financing Chocolate Factory's convertible debentures were issued at their $1,000 par value in 2007. At any time prior to maturity on February 1, 2027, a debenture holder can exchange a bond for 25 shares of common stock.

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  380033 Explain why preferred stock is sometimes considered a hybrid Explain why preferred stock is sometimes considered a hybrid security (i.e part stock/part bond).

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  Preferred stock is often referred to as a hybrid security. What is meant by this term as applied to preferred stock? Preferred stock is often referred to as a hybrid security because it has many characteristics of both common stock and bonds.

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• Case study of Delta Airlines

  As a required by the Plan of Reorganization approved by the Bankruptcy Court, Delta canceled its preplan common stock on April 30, 2007. Holders of preplan common stock did not receive a distribution of any kind under the Plan of Reorganization.