iHeartCommunications, Creditors Agree To Extend Temporary Restraining Order Until May Trial
April 6, 2016 at 8:06 AM (PT)
iHEARTMEDIA parent iHEARTCOMMUNICATIONS, INC. and the creditors group that it sued in a dispute over iHEART moving CLEAR CHANNEL OUTDOOR stock to a new subsidiary have agreed to extend the existing temporary restraining order against the creditors' Notice of Default until a trial in the case on MONDAY, MAY 16th.
A statement from iHEARTMEDIA reads, "We are pleased with the outcome and look forward to an expedited trial. As we have previously stated, we believe our contribution of CLEAR CHANNEL OUTDOOR HOLDINGS, INC. stock to our subsidiary BROADER MEDIA, LLC fully complied with our financing agreements. The strong performance of our operating business provides us with the flexibility to manage our capital structure in a prudent manner, and we will continue to evaluate opportunities to strengthen our balance sheet."
A group of 15 creditors, including D. E. SHAW, CANYON CAPITAL, FRANKLIN ADVISERS, and FRANKLIN MUTUAL, contend that the stock transfer constitutes a violation of debt covenants, and thus may accelerate the payment due date of up to $15 billion within 60 days of the notices. iHEART filed suit in TEXAS District Court in BEXAR COUNTY and obtained a temporary restraining order to put the brakes on the default notice until the court determines whether the stock move was permissible.