Bondholder: “I Was Shocked.”

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The San Antonio Express-News reports that Jon Belk of Franklin Advisers, Inc., investment adviser to certain iHeartMedia bondholders, was completely blindsided when he heard of the December 3rd transfer of Clear Channel Outdoor shares. “I was shocked at the transfer of 100 million shares of stock from Clear Channel Outdoor, the crown jewel of the company” to the iHeartMedia subsidiary named Broader Media. I had never heard of. I thought the action was underhanded the way it happened.”

The Newspaper reports that Belk says he was afraid his company would “lose access to those shares as collateral” for much of Franklin’s $2 billion in iHeartMedia in bond loans.

According to the paper, iHeart attorney Kevin Huff countered by citing an e-mail Belk sent to his Franklin colleagues. Huff said Belk acknowledged that the share transfer could benefit iHeartMedia’s debt profile if the money was used to buy back discounted debts.

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