....if there is a significantly increased chance that Emmis eliminated a liability of up to $60 million or so, or roughly $1.50 per share? (The indenture governing the preferred only allows for a conversion of like 2.4 shares of common, for each preferred share.) I guess the other side could appeal the judge's ruling, but she stated, pretty uniformly, that Emmis's actions were consistent with the IBCL...and that directors had the right to act in a way that they thought, in good faith, benefited the corporation. She also said that, unlike other jurisdictions, Indiana gives to corporations, if it's set up properly, the right to vote their own shares.
Will the preferred holders finally come to the table now and settle? It would seem wise for all sides....but i doubt they would be able to get more than $16 out of EMMS, at this point.
The preferred shareholders helped prevent the previous offer from going through which was back in 2010 when Smulyan offered to buy out shareholders for $2.40 a share. I wonder why they really didn't want the deal to go through because looking back, they would be better off if the deal went through considering what happened yesterday. If it wasn't for the preferred shareholders, we wouldn't have had this chance to see EMMS at the price we are currently at. Hopefuly the preferred shareholders buy the common stock now and help drive up the price.
It's a mystery to me, too. I've been worried that the price was lagging because the preferred suit was developing adversely, but obviously not. I dunno. The stock is up a lot off it's lows, and is tainted because of Smuylan and the screwing of the preferred holders. Both of these should fade from view over time.
From 8k- 9/4/2012
"The holders of Preferred Stock remain entitled to convert their shares of Preferred Stock into shares of Class A Common Stock at a rate of 2.44 shares of Class A Common Stock for each share of Preferred Stock at any time at the option of the holder." Conversion price of $20.495 per share of Preferred Stock,
The preferred shares have been reclassified as permanent equity. Diluted net income counts the converted preferred shares series A. Last 10Q states $46.4 million of Preferred Stock liquidation preference.