Spanish Broadcasting System Denounces Lehman Brothers Complaint as Frivolous
Retains Skadden Arps to Defend Against Meritless Claim
MIAMI, March 4, 2013 (GLOBE NEWSWIRE) -- Spanish Broadcasting System, Inc.
("SBS" or the "Company") (Nasdaq:SBSA) today announced that on February 14,
2013, Lehman Brothers Holdings, Inc. ("Lehman"), purporting to own
approximately 39% of the outstanding SBS Series B Preferred Stock, filed a
complaint (the "Complaint") against the Company in the Delaware Court of
Chancery alleging a violation of the Preferred Stock Certificate of
Designations. More specifically, the Complaint alleges that SBS has failed in
its obligations regarding its required preferred stock dividend payments.
The Company denies the allegations contained in the Lehman complaint and, to
the contrary, asserts that it has been and continues to be in full and
complete compliance with all of its obligations under the Certificate of
Designations for the Series B Preferred Stock, as fully disclosed in the
Company's filings with the Securities and Exchange Commission dating back to
2009.Accordingly, the Company believes that the Complaint's allegations are
frivolous and wholly without merit and intends to contest such allegations
vigorously.The Company has retained Skadden, Arps, Slate, Meagher and Flom
LLP to represent it in connection with the Lehman action.
In addition, the Company notes that the day before the filing of the
Complaint, the judge presiding over the Lehman bankruptcy proceedings denied
Lehman's objection to the Company's Proof of Claim in an unrelated litigation
in which the Company is asserting almost $50 million in damages as part of a
Proof of Claim filed in 2009 relating to a Lehman affiliate's willful failure,
prior to its bankruptcy filing, to fund its commitment under the Company's
then extant revolving credit facility. A trial date has not yet been set for
About Spanish Broadcasting System, Inc.
Spanish Broadcasting System, Inc. is the largest publicly traded
Hispanic-controlled media and entertainment company in the United States. SBS
owns and/or operates 21 radio stations located in the top U.S. Hispanic
markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto
Rico, airing the Tropical, Mexican Regional, Spanish Adult Contemporary and
Hurban format genres. The Company also owns and operates MegaTV, a television
operation with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico. SBS also produces live concerts and
events and operates www.LaMusica.com, a bilingual Spanish-English online site
providing content related to Latin music, entertainment, news and culture. The
Company's corporate Web site can be accessed at www.spanishbroadcasting.com.
This press release contains certain forward-looking statements.These
forward-looking statements, which are included in accordance with the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995, may
involve known and unknown risks, uncertainties and other factors that may
cause the Company's actual results and performance in future periods to be
materially different from any future results or performance suggested by the
forward-looking statements in this press release.Although the Company
believes the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that actual
results will not differ materially from these expectations.Forward-looking
statements, which are based upon certain assumptions and describe future
plans, strategies and expectations of the Company, are generally identifiable
by use of the words "may," "will," "expect," "believe," "anticipate,"
"intend," "could," "estimate," "might," or "continue" or the negative or other
variations thereof or comparable terminology.Factors that could cause actual
results, events and developments to differ are included from time to time in
the Company's public reports filed with the Securities and Exchange
Commission.All forward-looking statements made herein are qualified by these
cautionary statements and there can be no assurance that the actual results,
events or developments referenced herein will occur or be realized. The
Company undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operation results.
CONTACT: Analysts and Investors
Jose I. Molina
Vice President of Finance
Analysts, Investors or Media
Brainerd Communicators, Inc.
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