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Lehman Sues SBS Over Dividends


Bloomberg reports Spanish Broadcasting System is being sued by Lehman Brothers Holdings, which claims the company owes $29.36 million in preferred stock dividends. Lehman asked a Delaware court to rule SBS violated a contract by not making the payments, and is therefore prohibited from incurring additional debt.

According to Bloomberg, Lehman lawyers contend that despite the fact of the contract, and non-payment to Series B preferred stockholders since mid-2009, “the company proceeded in 2011 and 2012 with the incurrence of hundreds of millions of new debt -- including a $275 million refinancing.”