8-1-2012
Bloomberg reports that a federal judge will hear more arguments today after Emmis CEO Jeff Smulyan, COO Pat Walsh and representatives from the preferred shareholders group testified Tuesday. The investors want the judge to block an August 14th shareholder meeting from taking place. It's at that meeting where millions of dollars in preferred stock dividends might be wiped away. Smulyan told the judge he did not have plans to take the company private, which is one of the accusations being made by the preferred shareholders. They are also worried they are about two weeks away from losing millions of dollars.
According to Bloomberg, Emmis attorney Richard Kempf said, ?Emmis management is fulfilling its responsibility. It?s impossible for every constituency to be satisfied.? Smulyan testified he did not have plans to take the company private. He tried that and doesn't want to go down that road again. ?I?m worn out from two years ago. I just don?t want to do it. I can?t foresee a situation in which that would change.?
John Barrett from Core partners told the court that Walsh warned him last year Corre risked its investment being rendered worthless if it didn?t participate in the swaps program, according to the Bloomberg report. Barrett said he came away from that conversation believing Walsh had effectively said, ?I?m going to annihilate you.? When asked about that conversation, Walsh said he did not attempt to threaten Barrett ?There?s no coercion. I?m not allowed to coerce."
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