More Court Woes For iHeart


    Just days after iHeartMedia won a court decision with disgruntled bondholders, there’s another legal issue the company has to deal with. This one comes from shareholder Gamco Asset Management. Bloomberg reports that Gamco is accusing the board of violating its duty to protect shareholders by moving Clear Channel Outdoor revenue to iHeartmedia. “The deal leaves the outdoor unit ‘unable to exploit business opportunities, and with a ‘virtually uncollectible receivable’ from its parent company of $640 million, Bloomberg reports from Gamco attorney Norman Monhait.

    iHeartMedia responded with the following statement, provided to Radio Ink on Friday. “We believe the allegations in the lawsuit are baseless and without merit. The Clear Channel Outdoor Holdings, Inc. Board of Directors takes seriously its responsibilities and duties to the Company and to all CCOH stockholders. The Board established a special committee of independent directors in 2013 for the specific purpose of monitoring the intercompany note between CCOH and iHeartCommunications, Inc. We are confident that the Board and the special committee have properly discharged their responsibilities and duties to the Company and to all CCOH stockholders and will continue to do so.”




    1. California Teachers Pension Fund- Get out now before CCO goes under. Having worked at CCO during the acquisition boom (17x cash flow) there is a lot of money buried in their portfolio. Rumor has that people are fleeing as we speak. Poor Mitt will take another Company under.

    2. When the gullible and the credulous meet the greedy – there is a lot of influence pedalling going on and a lot of money changes hands.
      Investors want their money back? Yeah, I tried the same thing at the track once when I took my ticket back to the window. Gales of laughter followed me back to the grandstand.

    3. Million dollar water misters for Bobby Pittman’s offices…while Pittman as the Clear Channel/iHeart boss hasn’t made one dime in profit for the company in 7 years now…yet he’s added layers of management, spent millions on extravagant yacht parties in exotic locations…sooner or later investors are going to start asking questions and at some point there is always accountability, even if it’s your hand-picked Board of Directors always defending you. Investors want a return, or at least their money back. Business 101!


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