iHeart Working To Settle With Bondolders

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As the court case began in Texas Monday, a group of iHeart’s bondholders made a proposal to the company which includes in the “permitted investment” column iHeartMedia not being able to use Broader Media or CC Finco for future financial transactions, among many other items. iHeartMedia made a counter proposal, which included a point that the company will not designate any additional subsidiaries as unrestricted but that Broader Media and CC Finco will continue to be unrestricted.” While those proposals are being reviewed and, perhaps, massaged, the court case goes on in Texas and is expected to last about a week.

Read the proposal the bondholders made to iHeart HERE.
Read the counter from the company HERE

iHeart also provided Radio Ink with the following statement Monday morning: “As we have stated, we believe our contribution of Clear Channel Outdoor Holdings, Inc. stock to our subsidiary Broader Media, LLC fully complied with our financing agreements.  We look forward to the expedited trial on the merits of our case — which began today — and a ruling by the Texas court that affirms our position. As previously announced, we entered into mediation with some of our lenders to pursue potential resolution of the litigation currently underway in Texas and to explore amendments to our existing financing agreements. The mediation, which is continuing, yielded proposals from both sides which address a broader solution than what is at issue in the trial. We have had productive conversations over time with many of our lenders as we continue to focus on executing on our strategic plan and realize the financial benefit for all our stakeholders.”

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