According to this article, the preferred group is in part suing over $10 million in owed dividends. If that is all, why not just agree to pay it out with some of the cash from the upcoming sale of the LA station, in return for giving up their shares. Having reobtained so many preferred shares at a huge discount, and not having to pay the owed dividends on the them, finally ending the drama would be worth it.
The Lockup group is between a rock and a hard place. Anyone would sympathize with their situation, but unfortunately EMMS has a situation too. I think EMMS has tried to be fair. One of the risks of the markets is partial of even total failure of the company. If the preferred shares are allowed to mature then bankruptcy is the likely outcome.