The San Antonio, Texas-based company has been battling with creditors, a group made up mostly of hedge funds, after it moved Clear Channel Outdoor Holdings Inc shares to another subsidiary, Broader Media LLC.
iHM this week received a default notice from the creditors, arguing the transfer is technically a default, and saying they could call their debt due in 60 days - a sum more than $6 billion - according to a lawsuit iHM filed in State District Court in Bexar County, Texas.
The lawsuit also claims that the creditors' actions threaten to force the company into bankruptcy.
The restraining order iHM won expires in 14 days, but the court may extend it, according to a public filing from the company. The order also stops the creditors from issuing additional notices of default.
iHM said in a prepared statement that it was pleased with the outcome and looks forward to a favorable ruling.
The share move could be used to help the company, struggling with a $21 billion debt load, to find other financing opportunities, Moody's Investors Service said in a research note.
In San Antonio, The Express-News reports iHeartMedia’s debts total more than $20 billion. The company is seeking a trial on or before April 1, according to court filings.
No comments:
Post a Comment