Super Bowl Update

Indianapolis-based Emmis Communications is awaiting the ruling of U.S. District Court Judge Sarah Evans Barker in a suit filed by the company's preferred shareholders to block a vote on eliminating their dividends.

Those dividends are worth millions of dollars, and the shareholders have accused the company's CEO, Jeff Smulyan, of trying to take Emmis private, as he tried and failed to do twice before, in 2006 and 2010.  Smulyan told the court that is simply not the case. “I’m worn out from two years ago,” the chairman and chief executive officer said. “I just don’t want to do it. I can’t foresee a situation in which that would change.”

One of the intentions of the plaintiffs was to stop a scheduled Aug. 14 shareholder meeting where, they claim, the dividend wipeout would be approved.  They've succeeded in postponing the meeting, as Smulyan has now pushed it back until after Judge Barker rules.

Emmis is trying to reposition and refashion its business, which includes a number of radio stations in Indianapolis and Terre Haute (see below), and as part of that process, the company is also trying to cut its debt load.

Judge Barker said she would rule by Aug. 31; she closed Wednesday's proceeding by suggesting the parties work together to come up with a plan that would compensate the shareholders fairly while also allowing the company to get its financial house in order.

There's no word on whether talks between the two sides have been scheduled.