IHeartMedia Seeks to Show Elliott Is Trying to Profit Its Default
- Company claims hedge fund firm bought credit default swaps
- Radio station owner is battling 15 creditors over debt payment
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IHeartMedia Inc. claims an affiliate of Elliott Management Corp. bought short-term credit default swaps to reap a “financial windfall” that materializes if creditors can push the radio giant into default by claiming it violated its debt covenants.
IHeart persuaded a Texas state judge to order Elliott Monday to turn over documents and submit to a deposition that the company says will show that the hedge fund firm or one of its affiliates bought the swaps on its debt.