9-4-2012
Now that a court has ruled in favor of Emmis, the company will hold a shareholder meeting Tuesday at Emmis headquarters in Indianapolis. The meeting is being held so shareholders can vote on amendments to the preferred stock. The first of seven amendments to be considered would be to remove Emmis' obligation to pay preferred shareholders back dividends. Emmis sued the preferred shareholders hoping for the result that was handed down by the judge on Friday before moving forward with the vote that will take place today.
A majority of the Emmis Board believes the amendments will have a positive impact on Emmis' capital structure. It's been reported that preferred shareholders are owed about $34 million in dividends, dating back to 2008. More specifically, according to an SEC filing, the Emmis Board believes the amendments will provide Emmis with greater flexibility in recapitalizing and improving its balance sheet; enhance the value of the common stock and reduce debt. Emmis has been aggressively selling radio stations and its magazine business to reduce debt.
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