Report: CC Media Lenders Threaten Refinancing Plan

RADIO ONLINE | , , | :am CT

Some of the largest lenders to CC Media Holdings, the parent of Clear Channel, intend to turn down a proposed debt exchange, reports the Financial Times. Instead, lenders would like to see private equity groups Bain Capital Partners and Thomas H. Lee Partners default in hopes that the company will violate its lending agreements enabling them to take control of its equity at a "steep discount."

Lenders in the debt exchange efforts include Apollo Management, GSO, Centerbridge Partners, OakTree Capital and firms that provided the deal's original financing. Bain and Lee own about $2.5 billion in senior debt and reportedly will throw their weight behind the proposed exchange.