IHeartMedia In The Courts

The radio giant, known in past decades as Clear Channel Entertainment, is burdened with $21 billion in debt and sources told Reuters it has hired Moelis & Co. as a financial adviser while it copes with competition from streaming music sources like Spotify and Pandora.

IHeartMedia transferred shares of its billboard subsidiary, Clear Channel Outdoor Holdings, to another unit, Broader Media LLC, in December. Bondholders cried foul, claiming covenants were violated, and threatened to file a formal default notice, according to the San Antonio Express-News. As a result, iHeartMedia has agreed to not transfer additional stock until a hearing is held.

When it filed its lawsuit March 8, the company received a loan default notice from creditors that represented more than 25 percent of the outstanding bonds of the company’s series of priority guarantee notes, the Express-News said.

“We believe the contribution constituted a permitted investment under, and fully complied with, our financing agreements. We are pleased with the outcome of today’s hearing,” iHeartMedia said in a statement March 9. “We continue to evaluate opportunities to strengthen our balance sheet.”