IHeartMedia, Lenders in Fight Over Disputed Share Transfer
- Note holders file default notice for moving stock to unit
- Radio broadcaster objects to allegations, sues creditors
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A group of IHeartMedia Inc. creditors are going to battle with the debt-laden radio broadcaster over a move that the investors say weakened their claim on about $500 million of assets.
IHeart said it received notices of default from its bondholders, according to a filing Monday. The lenders claim that the company violated debt covenants by transferring the shares of Clear Channel Outdoor Holdings Inc. to its Broader Media LLC in December. The creditors represent at least 25 percent of the outstanding principal of four of the company’s priority guarantee notes.