SBS Responds To Lehman Suit: 'Frivolous'
March 5, 2013 at 4:36 AM (PT)
SPANISH BROADCASTING SYSTEM's response to LEHMAN BROTHERS HOLDINGS, INC's suit alleging failure to pay dividends to preferred shareholders (NET NEWS 2/18) is to deny the allegations and assert its "full and complete compliance with all of its obligations under the Certificate of Designations for the Series B Preferred Stock.... the Company believes that the Complaint's allegations are frivolous and wholly without merit and intends to contest such allegations vigorously."
In addition, SBS alleges that the day before LEHMAN filed its complaint, the judge in the LEHMAN bankruptcy proceedings denied LEHMAN's objection to SBS' Proof of Claim in a separate $50 million suit over LEHMAN's alleged failure to fund SBS' credit facility.
SBS is being represented by SKADDEN, ARPS, SLATE, MEAGHER AND FLOM LLP in the defense against LEHMAN's suit.