THL's Sperling: CC Not In Danger Of 'Imminent Blowup'
April 14, 2009 at 5:26 AM (PT)
THL PARTNERS Co-President SCOTT SPERLING told CNBC MONDAY that his firm does "not have an expectation that we will have an imminent blowup" of CLEAR CHANNEL's operations. Asked on the cable network's "STREET SIGNS" "is the CLEAR CHANNEL deal gonna blow up or not?" SPERLING, noting that imminent release of financial figures places the company in a quiet period for comments, said that the company has "a lot of levers it can pull to continue to generate reasonable cash flow" despite worse-than-expected economic conditions. ("We expected to have a recession. We didn't expect to have a recession near this bad.")
The future is very difficult to predict....
Despite a advertising market that "continues to be quite poor," SPERLING said that in the company's most negative projections, "we're able to manage through those scenarios ... as we sit here today, we believe we have no imminent threat. We have a capital structure where there are various securities within that capital structure that are under pressure partially because of the nature of those securities that were put in place in that SPRING of '08 time frame, but we have a management that we believe in and we have an unmatched asset base. The future is very difficult to predict...."
See the interview by clicking here.