Emmis Repurchase Plan Being Blocked By Preferred Shareholders
December 20, 2011 at 3:56 AM (PT)
THE INDIANAPOLIS BUSINESS JOURNAL reports a "group of preferred shareholders of EMMIS COMMUNICATIONS CORP. is attempting to block the INDIANAPOLIS-based media company’s offer to repurchasing another $6 million of preferred stock."
At the end of NOVEMBER (NET NEWS 11/30), ALL ACCESS reported EMMIS launched a modified "Dutch auction" tender offer to purchase up to $6,000,000 in value of shares of its 6.25% Series A Cumulative Convertible Preferred Stock, at a price per share not less than $12.50 and not greater than $15.56.
Now, notes THE JOURNAL, "a group of preferred shareholders that includes NEW YORK-based CORRE PARTNERS MANAGEMENT LLC has banded together to prevent the sale of those shares through a lock-up agreement, according to SECURITIES AND EXCHANGE COMMISSION documents. They're concerned that through repurchases, EMMIS would amass voting rights for two-thirds of the preferred stock, and that it might use the clout to remove 'its obligation to pay the amount of dividends that are currently accrued and unpaid -- and to eliminate the right of preferred stockholders to nominate directors to Emmis' board'."