Categorized | TV & Radio

Investors sue SBS for $161 million stock buyback over corporate breaches

SBS logoEleven funds that invested in Spanish Broadcasting System Inc. (SBS) have sued the company for alleged contract and corporate duty breaches.

Law 360 reports the suit, filed in Delaware Chancery Court, seeks “redemption of $161 million in preferred stock and a bar on company debt additions.”

The lawsuit comes about six months since SBS entered into a forbearance agreement with separate holders of 12.5% interest senior notes issued by company, after defaulting on principal payments.

According to Law 360, the complaint states SBS accumulated a multiyear string of preferred-stock agreement violations, failed to pay dividends since 2009 and did not honor stock repurchase rights triggered in 2013.

SBS did not respond to a request for comment.

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- who has written 4641 posts on Media Moves.

I'm an Emmy award-winning journalist, who's worked as an on-air reporter in Spanish and English-language television news. I've worked for Univision, Telemundo, CNN en Español and Los Angeles Fox and UPN stations before diving into a convergence model at the San Jose Mercury News. I have also held management positions in the online digital sphere - first as Managing Editor of IntersectionsSouthLA.org, followed by a role as the West Coast Web editor for impreMedia. I was president of the National Association of Hispanic Journalists from 2004 to 2006. I am also a freelance writer, reporter and producer. I founded Media Moves in June of 2007.

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One Response to “Investors sue SBS for $161 million stock buyback over corporate breaches”

  1. Campesino says:

    Alarcon, broder, hasta cuando crees que te iba a durar la ordeñada esa?

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I'm an Emmy award-winning journalist, who's worked as an on-air reporter in Spanish and English-language television news. I've worked for Univision, Telemundo, CNN en Español and Los Angeles Fox and UPN stations before diving into a convergence model at the San Jose Mercury News. I was president of the National Association of Hispanic Journalists from 2004 to 2006, and inducted into the Hall of Fame in August of 2016. As an online news manager, I was West Coast Web Editor for impreMedia and Managing Editor of IntersectionsSouthLA.org. In addition to running Media Moves, which I founded in June of 2007, I'm a regular contributor to Forbes and also do freelance work as writer, reporter and producer.