$20 Billion In Debt, iHeartMedia Fights Off Forced Bankruptcy For Now
iHeartMedia Inc, the largest owner of U.S. radio stations and popular music streaner, on Wednesday managed to secure a temporary restraining order from a state court in Texas, blocking bondholders from declaring the company in default.
iHeartMedia, formerly known as Clear Channel, revealed in regulatory filings that the State District Court in Bexar County, Texas, had issued a restraining order after lenders issued default notices to iHeartMedia's creditors, claiming the company had violated lending covenants when they transferred 100,000,000 shares of Clear Channel Outdoor to its Broader Media LLC unit in December, Bloomberg reported.
The restraining order provides iHeartMedia with 14 days of relief from default notices, with an option to extend for another 14 days.
"We continue to believe that the Contribution did not cause a default under any of the Indentures or under the terms of any of our other indebtedness. If, however, we are unable to obtain the permanent relief we are requesting from the Court or are otherwise unable to successfully contest the validity of the Notices and any subsequent acceleration of a material portion of our indebtedness, then we would need to pursue other available alternatives to address the claimed defaults," iHeartMedia said in their regulatory filing.
iHeartMedia, which owns over 840 radio stations and boasts more than 110 million weekly listeners, is currently encumbered with more than $20 billion in debt, and is seeking to restructure itself.
via Celebrity Access