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Emmis Shareholders Approve Amendments


Emmis held a shareholder meeting today at Emmis headquarters in Indianapolis. The meeting was held so shareholders could vote on amendments to the preferred stock. All seven amendments were approved. Emmis CEO Jeff Smulyan said, “We are very happy to be moving forward. We think our company is poised for some exciting events in the next year and we are pleased that this stage of the process is completed.” Common share votes were nominally different with the seven proposed amendments, but in each case, they passed with  more than 72 percent of common voting in favor. Another item on the agenda was the ability to do a reverse stock split which also passed. The first of seven amendments was to remove Emmis' obligation to pay preferred shareholders back dividends.

Emmis sued the preferred shareholders hoping for the result that was handed down by the judge on Friday before moving forward with the vote that will take place today. A majority of the Emmis board believes the amendments will have a positive impact on Emmis' capital structure. It's been reported that preferred shareholders are owed about $34 million in dividends, dating back to 2008. More specifically, according to an SEC filing, the Emmis board believes the amendments will provide Emmis with greater flexibility in recapitalizing and improving its balance sheet; enhancing the value of the common stock and reducing debt. Emmis has been aggressively selling radio stations and its magazine business to reduce debt.

(9/4/2012 12:13:36 PM)
Shafting the audience, advertisers and staff - that we all understand. But the shareholders, as well!?
That takes either brass cojones or a vivid imagination... that isn't functional at this time. (Please stand by and watch this space for updates.)

- Ronald T. Robinson

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