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The Shareholder Forumtm

support for fair value realization

of stock investments in

DBM Global Incorporated

(f/k/a Schuff International Inc.)

 
 

Support of Minority Shareholder Interests

The Shareholder Forum had offered to support Appraised Value Rights ("AVR") of DBM (f/k/a Schuff International) minority shareholders in 2014 following a $31.50 per share tender offer by the company's controlling shareholder, HC2 Holdings, Inc., with the stated intent to proceed with a short-form merger "as soon as practicable.”

HC2 acquired DBM shares in the 2014 tender offer and other purchases bringing its total holdings to 92% of outstanding DBM shares, but has not proceeded with a merger. The Forum has continued to support the minority shareholder interests of its AVR participants in this context.

 
     

Forum distribution:

Former chairman of HC2 and DBM still working in HC2 offices, 450 Park Ave, and using DBM lawyers, Greenberg Traurig

 

Source: Radio+Television Business Report, February 25, 2021 article

 

Philip Falcone Returns to LPTV Ownership

Adam Jacobson

A dissident investor in HC2 Holdings successfully lobbied for his ouster as CEO. Now, less than a year after his exit, he's reemerged as the head of a new entity that is agreeing to purchase two low-power TV stations serving Los Angeles.

Philip Falcone Returns to LPTV Ownership

By Adam Jacobson - February 25, 2021

 

Until his June 2020 departure from HC2 Holdings Inc., Phillip Falcone was widely known across the broadcast media industry as a flashy big spender on low-power broadcast TV stations.

Then came accusations that Falcone defaulted on loans. His assets were frozen for failure to compensate his legal representatives. This followed by a 2019 court order that saw HC2 withhold some of Falcone’s salary in lieu of some $2.69 million in unpaid taxes to the City of New York.

All of that negative activity is firmly now in the past, as Falcone has reemerged as the head of a new entity that’s agreed to purchase two low-power TV stations in Los Angeles.

Falcone today serves as CEO of Sovryn Holdings, and lists an address of 450 Park Avenue in New York as its headquarters. That’s the same address of Harbinger Capital Partners, where Falcone has a major presence.

Aided by legal counsel James Altenbach of Greenberg Traurig, Sovryn is purchasing the following LPTVs from NRJ TV III:

  • KNET-CD, using PSIP Channel 25 and on digital Channel 32
  • KNLA-CD, using PSIP Channel 20 and on digital Channel 32 (via a channel-sharing arrangement with KNET)

Falcone signed off on the deal, which sees Greg Guy of Patrick Communications serve as the exclusive broker, representing Sovryn, on February 17.

The deal is valued at $10 million, and Sovryn has made a 10% deposit that’s being held in escrow. It’s a nonrefundable payment, and NRJ TV will keep it should the deal crater for some reason.

Serving as Sovryn’s legal counsel is Trey Hanbury of Hogan Lovells LLP.

Sovryn’s ownership structure sees Falcone hold 1/3 of the assets and hold 68.9% voting power. Lisa Falcone, who oversees the “FFO 2 2021 Irrevocable Trust,” is a 17.9% vote holder and controls 33.49% of the assets. The Chief Operating Officer and Chief Technology Officer, Henry Turner, has no interest in the ownership of Sovryn. The FFO 1 and FFO 2 trusts hold the remaining ownership interest in Sovryn.

 

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The project supporting investor interests in DBM Global Incorporated (f/k/a Schuff International, Inc.) is being conducted by the Shareholder Forum for the benefit of Participants that have reserved Appraised Value Rights ("AVR") Management, subject to conditions including standard Forum policies that each Participant is expected to make independent use of information obtained through the Forum and that participation is considered private unless the Participant specifically authorizes identification.

Inquiries may be sent to shfk@shareholderforum.com.

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