That’s according to a report in The New York Post which says hedge fund manager Paul Singer bought an insurance policy on iHeartMedia’s debt — while trying to get iHeart to file for bankruptcy.
iHeart filed papers in a Texas courthouse against Singer’s Elliott Management, claiming the distressed debt investor bought credit default swaps as it was planning, with other debt holders, to file a March 7 notice of default. iHeart says Singer would have made a lot of money if iHeart defaulted because holders of CDSs get paid in full if a company files for bankruptcy. iHeart has asked the court to look into Elliott’s conduct.
Picture courtesy New York Post