The San Antonio Express-News broke the news that a new lawsuit was filed Tuesday. iHeartMedia is asking for hundreds of millions of dollars in damages over the previous dispute it had with bondholders because that case delayed plans to refinance debt and cost the company money. The original lawsuit, which iHeartMedia won, was about a transfer of stock from Clear Channel Outdoor to a subsidiary called Broader Media. The bondholders claimed the transfer violated credit agreements and plans to refinance were put on hold while the matter wound its way through the court.
Here’s what the newspaper reports from the lawsuit: “Because of the increase in price of iHeart’s debt, (the bondholders’) misconduct has cost iHeart and Broader Media additional damages of up to $375 million, and total damages between $100 (million) and $475 million. iHeart suffered special damages in the form of economic loss to its business, including the lost discount and reduced interest expense on repurchased debt.”
Read our previous stories about the iHeart battle with bondholders HERE
Iheart says “because of the bondholders misconduct…” ….This is hilarious!!! Because if Iheart/Clear Channel just PAID THEIR BILLS and met THEIR DEBT OBLIGATIONS, none of this would be happening. Clear Channel is trying to blame the creditors for their problems. …Wow. That’s liked the person heavily overloaded in debt, getting mad at Loan Mart because they won’t give them any more money.