iHeart Wins Temporary Reprieve
We reported iHeart had gone to federal court in Texas to fight a default notice from some of its lenders.
The State District Court in Bexar County, Texas ruled in the broadcast owner’s favor Wednesday when it issued a temporary restraining order rescinding the default notice.
The order is good for 14 days, but the court has the option to extend it for an additional 14 days, according to an SEC filing from the company. In exchange, iHeart agreed not to sell, transfer or otherwise “dispose of” any interests in or proceeds of additional stock shares until a hearing.
The company reiterated it believes the stock transfer from Clear Channel Outdoor Holdings to subsidiary Broader Media was allowed under its financing covenants.
“We are pleased with the outcome of today’s hearing and look forward to a favorable ruling on the merits of our case,” said the company in a statement.