As shares of the San Antonio based iHeartMedia continue to decline (near $1) reaching all time lows a court appearance this coming Tuesday (for 3 days). The hearing will ask the court to rule on whether the share contribution iHeart made from one of their subsidiaries to another was permitted under their financing agreements.
The bondholders are claiming default because the corporation moved funds from their original investments. “There’s no way the company could pay $15 billion of debt,” iHeartMedia SVP and Treasurer Brian Coleman states. The company disclosed that it had $20.7 billion in total debt at the end of 2015. This is going to be very interesting.