Author Topic: IHeartMedia Wins Legal Fight With Lenders #IHRT  (Read 349 times)

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Offline AbaraXas

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IHeartMedia Wins Legal Fight With Lenders #IHRT
« on: May 31, 2016, 11:14:06 AM »
This is the network that hosts Rush. This is a big win because it had driven their stock down drastically (from $90 to $1) and froze up their cash flow. Posting because this is timely as Rush's contract is set to renew and IHRT now has the cash flow for a decent deal.

Quote
IHeartMedia Inc. secured a victory Tuesday against a group of lenders that had tried to declare an event of default on billions of dollars of the radio giant's debt.

A judge in the State District Court of Bexar County, Texas, ruled a stock transfer made by the company, formerly known as Clear Channel, last year was a permitted investment under the terms of its loan agreements, the company said Tuesday

IHeartMedia had brought the Texas lawsuit in March, which put the brakes on claims by a group of lenders, holding more than $3 billion in debt, that an equity transfer violated the terms of their indentures and triggered a default. .....

http://www.advfn.com/news_IHeartMedia-Wins-Legal-Fight-With-Lenders_71564155.html


Online Sanguine

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Re: IHeartMedia Wins Legal Fight With Lenders #IHRT
« Reply #1 on: May 31, 2016, 11:31:17 AM »
I wish I understood this better.  For instance:

Quote
The ruling in Texas comes as iHeartMedia begins to grapple with ways to address its massive debt load that totals $20.6 billion, including $8.3 billion maturing in 2019. The debt load largely stems from a 2006 leveraged buyout led by Bain Capital Partners LLC and Thomas H. Lee Partners LP.
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Offline AbaraXas

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Re: IHeartMedia Wins Legal Fight With Lenders #IHRT
« Reply #2 on: May 31, 2016, 11:41:15 AM »
I wish I understood this better.  For instance:

In this case, a share of stock is debt. In order to buy out Cumulus' holdings from Bain, they issued $20B in stock, with some having a closing date (ie agreed buy back date) in 2019 at an agreed upon price.
Not really unusual nor is that as big of outstanding stock as it appears.  Their current market cap at their beat down price is $95 Million, so if they even get back to close to their 52 week high of around $7, they should be set. Not to mention, their all time high of around $90 around the buy-out time. This is one of those cases to take Warren Buffet's advice and buy in when it is beat down.

geronl

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Re: IHeartMedia Wins Legal Fight With Lenders #IHRT
« Reply #3 on: May 31, 2016, 12:01:47 PM »
It was once a very large company, if they are now dependent on Limbaugh (who has turned off a large part of his audience this year) they are in big trouble.

Online Sanguine

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Re: IHeartMedia Wins Legal Fight With Lenders #IHRT
« Reply #4 on: May 31, 2016, 01:11:36 PM »
In this case, a share of stock is debt. In order to buy out Cumulus' holdings from Bain, they issued $20B in stock, with some having a closing date (ie agreed buy back date) in 2019 at an agreed upon price.
Not really unusual nor is that as big of outstanding stock as it appears.  Their current market cap at their beat down price is $95 Million, so if they even get back to close to their 52 week high of around $7, they should be set. Not to mention, their all time high of around $90 around the buy-out time. This is one of those cases to take Warren Buffet's advice and buy in when it is beat down.

Uh huh.  Valiant effort, AbaraXas, but it's not working. I guess I need charts and graphs in order to really understand it.
There are no safe spaces in real life.   - LMAO

Walk in Wisdom
See then that you walk circumspectly, not as fools but as wise, redeeming the time, because the days are evil.

But the noble make noble plans, and by noble deeds they stand.

geronl

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Re: IHeartMedia Wins Legal Fight With Lenders #IHRT
« Reply #5 on: May 31, 2016, 03:35:25 PM »
They are in debt to their eyeballs. There is no chance they will be able to pay the debt that comes due in 2019 and finding new loans to pay that might be impossible in their financial situation.


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