Emmis Heads To Court To Defend Dividend Move
June 1, 2012 at 3:58 AM (PT)
EMMIS COMMUNICATIONS is heading to court TODAY (6/1), to defend their proposal to strip preferred shareholders of their right to collect millions of dollars in dividends. THE INDIANAPOLIS BUSINESS JOURNAL reports "the shareholders are attempting to block the plan and have asked a judge to issue a preliminary injunction to prevent EMMIS from holding a special meeting where investors would vote on the plan to weaken preferred shareholders' rights."
Preferred shareholders KEVAN FIGHT, CORRE OPPORTUNITIES FUND, ZAZOVE ASSOCIATES, DJD GROUP and FIRST DERIVATIVE TRADERS allege that EMMIS CEO JEFF SMULYAN and the company's board of directors ignored SECURITIES AND EXCHANGE COMMISSION rules, failed to file proper documentation, engaged in back-room deals and are illegally attempting to squelch their rights.
EMMIS reportedly has voting control over about two-thirds of the preferred stock. In an e-mailed statement to IBJ, EMMIS said it "remains confident that all its actions were consistent with applicable state and federal laws."