San Antonio, March 8, 2016 – iHeartMedia, Inc. (OTCBB: IHRT) today issued the following response to an event of default allegation made by a small number of the company’s lenders:
The strong performance of our operating business provides us with the flexibility to manage our capital structure in a prudent manner. In full compliance with our debt covenants, we continue to evaluate opportunities to strengthen our balance sheet.
We believe our recent contribution of Clear Channel Outdoor Holdings, Inc. stock to our subsidiary Broader Media, LLC constituted a permitted investment under, and fully complied with, our financing agreements. We strongly believe the notices of default issued by the lender group based on the contribution are invalid.
Prior to receiving the notices, we filed a lawsuit in the State District Court in Bexar County, Texas to reaffirm our position that the contribution was permitted. We intend to take any other actions necessary to protect iHeartMedia and remain willing to engage in constructive discussions with any of our various groups of lenders to position iHeartMedia for long-term growth.