iHeart, Creditor Trial Set to Begin
Barring some change, iHeartMedia and some of its creditors were due to begin a trial in Texas today in State District Court over whether the broadcaster was allowed to move some stock shares in December.
The broadcaster gave an unrestricted subsidiary, Broader Media, $516 million of common stock in Clear Channel Outdoor in December, we reported. The action was meant to help sell a bond to help iHeart pay off some of its $20.6 billion debt.
The broadcaster believes the move was permitted and complied with financing agreements while some of its creditors do not and said some covenants were violated by the transfer.
iHeart brought on investment bank Moelis & Co. as a financial advisor earlier this year, we reported. Now, Reuters reports iHeart has brought in restructuring advisory firm Millstein & Co. to help evaluate debt problems.
iHeart told RBR+TVBR it had no comment.