IHeart Said to Enter Lender Pact That May Stop Default Fight
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Struggling radio broadcaster IHeartMedia Inc. reached an agreement with a group of lenders that could forestall a fight over whether the company violated its debt agreement, according to two people with knowledge of the matter.
The creditors have agreed to temporarily hold off from filing a default notice claiming that IHeart breached its debt terms by shifting assets to its Broader Media LLC subsidiary last year, said the people, who asked not to be identified because the deal hasn’t been made public. Under the so-called standstill agreement, the company won’t move any additional assets, the people said. The arrangement, which runs through March 2, can be extended if both sides agree, they said.