As part of its restructuring plan, Emmis Communications is looking to save millions of dollars by not paying out dividends to preferred shareholders. The shareholders object and are going to court to block a special meeting where a vote on the matter is to be held.
According to the Indianapolis Business Journal, the shareholders feel their rights are being trampled on and various improprieties are being utilized to do the trampling.
For its part, Emmis says that everything it is doing is by the book.
IBJ identifies the objecting shareholders as Kevan Fight, Corre Opportunities Fund, Zazove Associates, DJD Group and First Derivative Traders.
Emmis recently was given an opportunity by NASDAQ to get its head above water, in the form of a stock share value of $1.00 or more, by the end of summer. It managed the feat well before deadline and is comfortably above that basement floor at the moment.
The hearing, originally planned for 6/1/12, has been delayed by Judge Sarah Evans Barker, according to another IBJ report. She has asked Emmis for more information on the results it expects from its plan, and expects to hold a hearing within 30 days of reception of the Emmis report.