Chesapeake Preferred: Dividend Or Board Of Director Seats

Chesapeake Energy (NYSE: CHK) recently reinstated its dividend on its preferred shares. Holders of record on Feb. 1, 2017, for the 4.5%, 5.0%, 5.75% and 5.75% (Series A) Convertible Preferred Stock will receive four quarterly payments of dividends in arrears on February 15, 2017. There are several fine articles (published via Seeking Alpha) which recap and breakout this reinstatement.
However, I've yet to read any material - at Seeking Alpha or in other financial media - which states exactly why Chesapeake reinstated its dividend. At a considerable cost, most would likely assume this was done out of improved viability (i.e., an improved health as an enterprise). This might be an accurate assessment, depending on the case being made.
But one reason we know for sure, regarding why Chesapeake reinstated its preferred dividend, is that Chesapeake had to reinstate its preferred dividend. That's right, by covenant. Well, it was either this or surrender two seats on its Board of Directors:
If we fail to pay dividends on our preferred stock with respect to six or more quarterly periods (whether or not consecutive), the holders of our preferred stock, voting as a single class, will be entitled at the next regular or special meeting of shareholders to elect two additional directors of the Company.
Chesapeake, being in the middle of a major restructuring, would have complicated its strategic execution had its junior preferred holders been able to acquire two Board seats;... Read more

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