Lehman Sues Spanish Broadcasting Over $29M In Dividends

Law360, Wilmington (February 15, 2013, 6:19 PM ET) -- Lehman Brothers Holdings Inc. targeted Spanish Broadcasting System Inc. on Friday in Delaware court, claiming the radio and TV station operator violated the contract on its preferred shares by taking on massive new debts despite failing to pay $29 million in dividends.

The defunct investment bank's complaint alleges the Miami-based Spanish-language broadcaster has repeatedly missed quarterly dividend payments since 2009 while undertaking a $275 million refinancing and other borrowings, showing “blatant disregard” for contractual restrictions on its preferred shares.

“The continued operation of the company and...
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