The following 8K link describes a loan modification agreement between EMMS and it lenders where the applicability of the Total Leverage Ratio and the Fixed Charge Coverage Ratio have been temporarily suspended from the present to no later 9/1/2011. Unfortunately part of the agreement is there are to be no Emmis' 6.25% Series A Cumulative Convertible Preferred Stock dividend payments during the suspension period.
they're also allowed to buy back more of their discounted debt from the proceeds of an "equity offering" - how are they going to do an equity offering when they're not current on the preferreds? They can sell debt I believe but not equity. And who would they sell debt to, they're buying their own bonds back at 50 cents on the dollar. Anyone make any sense of that?
The prefs are still an interesting bet in a tax sheltered account but watch out for the tax consequences otherwise.