Certainly matches the company's liability, under the Zell note, with future cash flows. which is good.
But I don't believe for a million years that Smulyan is interested in paying 22.95%, and keeping that outstanding for 3-4 years. I view the 22.95% interest being paid as a "short term device," to a goal that is much more nearer term (12 months or less). Whether that is another going private transaction, or a more substantive refinancing that allows the company to remain public, and begin growing again, remains to be seen. But with the common at 85 cents, it's hard to see, if the CEO resolves the issue of 1/3 of the pfd. holders stopping any going private transaction, why he wouldn't make another run at the company. It doesn't hurt that a 3% holder of the common (who was part of the class action to "stop" the deal last year), has now expressed support. (I believe, with ETM at %5.35, CMLS at $3, ROIAK at $1.35, and SALM at $2.50, that an EMMS deal at $2.40 is more credible, and "fairer," in this environment, even as I view the entire terrestrial radio industry as significantly undervalued. I guess what I'm saying, is that if Jeff Smulyan wants to give me an opportunity...in the short term...to cash out at $2.40, so that I can buy ETM at $5.35, and ride that up to $8-10, in the next 6-12 months, I'd welcome that opportunity.)