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.