Alden Threatens To Sue Emmis Unless It Revokes Loan To Smulyan
February 8, 2011 at 4:11 AM (PT)
ALDEN GLOBAL CAPITAL is threatening to sue EMMIS COMMUNICATIONS if it goes through with plans to loan JEFF SMULYAN $200,000 to pay his legal fees for his suit against ALDEN for pulling out of his failed buyout bid for EMMIS.
The INDIANAPOLIS BUSINESS JOURNAL reports that ALDEN sent a letter last THURSDAY demanding that the EMMIS board of directors rescind the loan, approved DECEMBER 24th, and recover any funds already distributed. ALDEN said that the loan violates the SARBANES-OXLEY Act and that if the loan is not rescinded by the close of business on FRIDAY (2/11), a lawsuit will be filed.
EMMIS sued three ALDEN units for breach of contract after ALDEN pulled out of a deal with SMULYAN's JS ACQUISITIONS to take EMMIS private.
"We're confident with the Board's position on the issue, and have equal confidence in the outcome," EMMIS spokeswoman KATE SNEDEKER told the paper in an e-mail.