iHeart Gains Restraining Order In Fight With Creditors
iHeartMedia has gained a bit more time in its fight with some of its creditors trying to force it into default.
A Temporary Restraining Order has been issued until the sides go to trial in Texas on May 16 over whether iHeartCommunications, Inc. improperly transferred $500 million worth of shares of Clear Channel Outdoor to subsidiary Broader Media, LLC. A group of 15 creditors argued that the stock transfer violated iHeart’s debt covenants and were preparing to issue default notices which could’ve forced the company to immediately have to pay nearly $12 billion of its debt back immediately.
iHeart issued a statement regarding today’s decision.
We are pleased with the outcome and look forward to an expedited trial. As we have previously stated, we believe our contribution of Clear Channel Outdoor Holdings Inc. stock to our subsidiary Broader Media LLC fully complied with our financing agreements. The strong performance of our operating business provides us with the flexibility to manage our capital structure in a prudent manner, and we will continue to evaluate opportunities to strengthen our balance sheet.
More details at Bloomberg.com.