CC Bondholders Claim New Debt Means Default
December 18, 2009 at 4:04 AM (PT)
Bad news for CLEAR CHANNEL, as THE NEW YORK POST reports the company's effort to lighten its debt load "hit a snag YESTERDAY (12/17) when a group of bondholders claimed a plan to raise $750 million in debt without their permission effectively put the company in default."
CLEAR CHANNEL had announced last week its plan to raise the debt, and the report claims a group of senior lenders sent the company a letter alleging that the capital-raising effort violated the terms of their loan agreement.
In a filing YESTERDAY, CLEAR CHANNEL said the claims have no merit.
"It's unclear which of the company's lenders cried foul," writes THE POST. "However, the company and its private-equity owners have been at war with a group of lenders, led by THE BLACKSTONE GROUP's GSO C's GSO CAPITAL, that have sought to take over the company as it has struggled to pay down its debt.