iHeartMedia May End Debt Talks with Lender Group
| RADIO ONLINE | Wednesday, June 29, 2016 |
|
iHeartMedia said it may break off negotiations on restructuring some of its $21 billion of debt. The news comes as the company failed to reach an agreement with some of its creditors following a Texas court ruling rescinding Notices of Default after creditors attemptd to declare $6 billion in senior notes in default. In an 8K filing, iHeart said, "Given the significant gap between the proposals, the company is assessing whether it will continue discussions."
Franklin Resources Inc.'s Franklin Advisers Inc. is the biggest holder of iHM's $6.3 billion of term loans and has reportedly lead the discussions. iHM says that various proposals to amend the terms of the company's credit agreement and, through a series of exchange offers, the priority guarantee note indentures, were exchanged. So far no agreement has been reached.
On December 3, 2015, an 8K filing said that the company contributed 100 million shares of Class B common stock of Clear Channel Outdoor Holdings from Clear Channel Holdings to Broader Media LLC (both wholly-owned subsidiaries) that is an "unrestricted subsidiary" under the Indentures. iHM said then the contribution was made in full compliance with all of the provisions.
