iHeartMedia Takes Bondholders To Court Again
July 29, 2016 at 5:05 AM (PT)
The SAN ANTONIO EXPRESS-NEWS reports that iHEARTMEDIA, INC. is heading back to court, suing its bondholders once again over damages from its previous successful suit that blocked the investors from declaring the company in default and accelerating debt payment deadlines. iHEARTMEDIA is claiming that the suit cost it the ability to promptly refinance some of its debt and increased the cost of restructuring; it seeks damages between $100 million and $475 million in the new suit.
iHEARTMEDIA commented, "We are always exploring avenues for improving our capital structure that position the company for long-term growth. Following a ruling in our favor by the State District Court in BEXAR COUNTY, TEXAS in litigation with a small group of our senior lenders, we repurchased some of our debt, as we have done in the past and as permitted by our financing documents. On JULY 26, 2016, we filed a lawsuit in BEXAR COUNTY to reaffirm our position that such debt repurchases are permissible. We believe these repurchases are in the best interests of the company and its stakeholders. We intend to take any other actions necessary to protect the company and will continue to explore opportunities to strengthen our capital structure."