Big Court Win For iHeartMedia

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A big win for iHeartMedia in court Tuesday as Texas State District Judge Cathleen Stryker ruled Broader Media, a subsidiary iHeartMedia created and transferred Clear Channel outdoor shares into, is allowed. The transfer of shares gives radio’s biggest company more flexibility to deal with its $20 Billion in debt.

After a trial that lasted a week, Stryker ruled in favor of iHeartmedia in its case with some of its bondholders. The bondholders argued Broader Media was not a valid investment and they wanted the shares moved back. They lost. Here’s the iHeartMedia statement:

“Today, the State District Court in Bexar County, Texas, ruled in our favor when it determined that our contribution of Clear Channel Outdoor Holdings, Inc. stock to our subsidiary Broader Media, LLC was a permitted investment under our financing agreements. The strong performance of our operating business provides us with the flexibility to manage our capital structure in a prudent manner. In full compliance with our financing agreements, we will continue to evaluate opportunities to strengthen our balance sheet. We look forward to constructive discussions with our lenders as we continue to position iHeartMedia for long-term growth.”

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