Settlement Of Shareholder Suit Against Clear Channel Outdoor Approved By Judge
September 10, 2013 at 4:36 AM (PT)
A settlement of a shareholder suit against CLEAR CHANNEL OUTDOOR HOLDINGS, INC. has been approved by a DELAWARE judge. The suit arose from a loan the company made to its parent company, CLEAR CHANNEL COMMUNICATIONS, INC.
The billboard company, its parent, and investors BAIN CAPITAL and THOMAS H. LEE PARTNERS were sued in MARCH 2012 by stockholders who alleged that a DECEMBER 2009 loan constituted a breach of fiduciary duties by allegedly requiring the outdoor company to agree to amend the terms of its 2005 Revolving Promissory Note by extending the term and changing the interest rate to below market.
The settlement, reached on MARCH 28th, has the outdoor company getting a payment of $200 million and declaring a special dividend of $200 million for its shareholders, and amending the interest rate as well as establishing a Board committee to monitor the Note.