The holders of certain Emmis preferred stocks believe they are owed hefty dividends; Emmis says they are not. A court is considering the matter, but won’t rule until 8/31/12, causing Emmis to push back a scheduled shareholder vote on the matter.
The shareholders believe they are owed millions of dollars. However, Emmis leaders say the elimination of the dividends was all part of a deal struck during the summer of 2009 when the company was amending its loan terms.
The matter has been litigated in the US District Court for the Southern District of Indiana, where the shareholders asked that an 8/14/12 meeting that would make the erasure of the dividend payments permanent be blocked.
There will be no need for that, as Emmis announced in an SEC filing that it would postpone the vote until after Labor Day.