CC Bondholders Claim New Debt Means Default

Looking To Raise Debt, Some Bondholders Say No

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.

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