How Far Apart Are iHeart, Creditors?
iHeartMedia says its mediation with some of its creditors continues and has “yielded proposals from both sides which address a broader solution than what is at issue in the trial” which began Monday in Texas.
At issue is whether the broadcaster was allowed to move more than 100,000,000 shares of Class B common stock of Clear Channel Outdoor Holdings, Inc., a “restricted subsidiary” to Broader Media, LLC, an “unrestricted subsidiary” under the company’s various debt documents.
“We have had productive conversations over time with many of our lenders as we continue to focus on executing on our strategic plan and realize the financial benefit for all of our stakeholders,” the broadcaster said in a statement to RBR+TVBR.
iHeart told the Securities and Exchange Commission that as part of the mediation, some of its creditors made a proposal to amend the terms of iHeart’s credit agreement. They are: Benefit Partners, Franklin Advisers, D.E. Shaw and Canyon Capital. See that proposal here: http://www.sec.gov/Archives/edgar/data/739708/000119312516590998/d136037dex991.htm
iHeart made a counterproposal, see that here: http://www.sec.gov/Archives/edgar/data/739708/000119312516590998/d136037dex992.htm
The outcome of the trial may have a “substantial bearing” on the outcome of the negotiations, which may be discontinued at any time by any party, according to the broadcaster.