iHeartMedia's Legal Win Against Creditors Upheld
| RADIO ONLINE | Thursday, October 12, 2017 | 0:27am CT |
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The Fourth Court of Appeals in San Antonio has upheld a court ruling blocking debtholders from forcing iHeartMedia Inc. into bankruptcy, reports the San Antonio Express News. The court affirmed a May, 2016 court ruling by Bexar County State District Judge Cathleen Stryker that blocked debtholders from filing default notices against the radio giant. The suit was triggered in December, 2015, after after iHM made an intercompany transfer of $516 million of stock in Clear Channel Outdoor Holdings Inc., to another unit.
At the time, debtholders, mainly hedge funds, said the transfer violated contract terms of the debt because the transfer did not meet a profit-seeking requirement and issued default notices.
"After reviewing the four corners in the indentures, we conclude that the pertinent language in the indentures is not ambiguous," the appellate judges wrote in the court's opinion, adding that seeking a profit was not required for a transfer of assets.
"We're pleased with the court's decision," an iHeartMedia spokeswoman told the newspaper an email Wednesday.
