Emmis Tells SEC It's Prepared To Pay Up To $3 Million In Severance In Merlin Deal
June 28, 2011 at 4:00 AM (PT)
In an SEC Form 8-K/A filing, EMMIS COMMUNICATIONS CORP. has disclosed that it is prepared to pay a maximum of about $3 million in severance to employees who lose their jobs in the sale of Alternative WRXP/NEW YORK and Alternative WKQX (Q101) and Rock WLUP/CHICAGO to RANDY MICHAELS' MERLIN MEDIA. EMMIS said in the filing that it has provided a list of employees to MERLIN and the latter can hire any of them, but those who are not hired or who get fired by MERLIN within 90 days of the transition will be eligible for severance from EMMIS.
EMMIS estimated that it could incur about $10 million of expenses in connection with the sale, including severance as well as $3 million of state and local taxes, $2 million in debt redemption premiums, and $2 million in professional fees.