The San Antonio Express-News is reporting that bondholders have transferred an iHeartMedia lawsuit against them seeking hundreds of millions of dollars in damages from debt default notices last year to federal district court in San Antonio. The suit was being heard in Bexar County state district court where iHeart had won a previous lawsuit.
iHeart Files Amother Lawsuit Against Bondholders
iHeart alleges some of its bondholders delayed the company’s ability to buy back some of its debts at a discount when the bondholders issued debt default notices against the company last March, according to the newspaper which quotes 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.”
