iHeartMedia Inc., which is currently mired in bankruptcy, said it’s delaying releasing its financial statements after discovering that employees apparently stole funds at a Hong Kong subsidiary, the company disclosed Tuesday.
According to the San Antonio Express-News, forensic accountants and lawyers hired by subsidiary Clear Media discovered various transactions in three bank accounts that were opened in its name without its authorization. Other unspecified matters also were discovered during the investigation. Several employees are under investigation by local police, the company said.
The findings were turned over to police, iHM and Clear Channel Outdoor Holdings reported in separate filings with the Securities and Exchange Commission.
iHM said they’re unable to file their latest annual reports with the SEC by the required filing date because Clear Media’s financial statements have not been completed. Clear Channel Outdoor is a billboard subsidiary which is 90 percent owned by iHM.
In addition, both iHM and Clear Channel said they were not able to complete an assessment of the effectiveness of internal controls over financial reporting as of Dec. 31.
Clear Channel has more than 580,000 displays in 31 countries. Clear Channel is not in bankruptcy.
Clear Media is an outdoor media company in China. It’s described as an indirect, non-wholly owned subsidiary of both iHM and Clear Channel. Clear Media trades on the Hong Kong Stock Exchange but the company’s shares are currently suspended from trading.
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