Smulyan's JS Acquisition Sues Alden Global After Emmis Privatization Falls Through
September 15, 2010 at 5:56 PM (PT)
As expected, JEFF SMULYAN's JS ACQUISITION, LLC is suing three affiliates of ALDEN GLOBAL CAPITAL for pulling out of its deal to back his bid to buy out the outstanding stock of EMMIS COMMUNICATIONS.
The suit was filed TODAY (9/15) in MARION SUPERIOR COURT against ALDEN GLOBAL DISTRESSED OPPORTUNITIES MASTER FUND, L.P.; ALDEN GLOBAL VALUE RECOVERY MASTER FUND, L.P.; and ALDEN MEDIA HOLDINGS, LLC, alleging that ALDEN pulled out of the deal after an agreement was reached with certain Preferred Stock holders (the "Lockup Group") to modify the terms of the notes being issued in exchange for their holdings. The complaint alleges that on or about AUGUST 24th, ALDEN's RANDY SMITH told a representative of SMULYAN's group that "the precipitous drop in asset values in the radio industry made the going private transaction unattractive to ALDEN."
SMULYAN said, "We entered into an agreement with ALDEN, believing them to be fair and trustworthy individuals. What we experienced was far different. No one should suffer the same fate at ALDEN's hands."
JSA is demanding a jury trial for the case.As expected, EMMIS's private buyout group, JS ACQUISITION, has filed suit against ALDEN GLOBAL this afternoon (9/15) in MARION COUNTY, IN Superior Court. alleging that ALDEN breached their agreement, which caused JS ACQUISITION to spend time, money and effort with the expectation that ALDEN would keep their word.
More details as we get them