Marty and His Sister Robin Both Invested in Shares of the Heavy

Marty and his sister Robin both invested in shares of the Heavy Metal Steel Company. Marty bought common shares and Robin bought the company's preferred shares. The two had been holding their stock for several years and had been pleased with their stock's performance. But sadly, Heavy Metal's business took a turn for the worse. After several quarters of disappointing numbers, the company suddenly announced it was going out of business. Marty and Robin, had they seen this coming, could have sold their shares at any time. But now it was too late. Which one of the following is the most likely outcome?

A) Marty loses his entire investment, but Robin might receive a partial repayment after Heavy Metal's bondholders are repaid.
B) Marty and Robin lose their entire investment.
C) Robin is repaid immediately, while Marty is eventually repaid after the sale of all of the company's assets.
D) Marty and Robin are repaid all of their initial investment due to a successful shareholder lawsuit.
E) Marty and Robin's investments regain value once Heavy Metal restarts operations.