SAN ANTONIO TX (CelebrityAccess) — A state district judge handed San Antonio-based iHeartMedia Inc. a victory against its creditors on Tuesday.
According to the San Antonio Express News, Judge Cathleen Stryker moved to permanently bar bondholders from filing default notices against the company over the transfer of assets to a subsidiary in order to take on more debt, which the creditors claimed was improper.
Bondholders attempted to file notices of default against iHeartMedia in March over a Dec. 3, 2015 transfer of 100 million shares of iHeartMedia’s outdoor advertising subsidiary Clear Channel Outdoor Holdings Inc. to another subsidiary so that they could issue new debt, allowing them to buy back expiring debt. However, the court, at that time, granted a temporary restrainng order pending the trial.
iHeartMedia contends that the transfer was allowed and will improve their financial position. – Staff Writers