After fending off one legal challenge that would’ve sent the company into default, the nation’s largest radio conglomerate now seeks a spot of revenge.
iHeartMedia is heading back to a Texas courtroom in hopes of getting mega-damages out of a consortium of investors who went after the company, serving a notice of default for playing fast and loose with its $20+ billion worth of debt — a strategy which involves iHeart setting up shell companies to repurchase some of the debt it already owes at lower interest rates, while also working to shield some assets from potential creditors. The conglomerate filed suit to stop the default process, and the Bexar County judge sided with iHeart in May. Continue reading “iHeartMedia Seeks Pounds of Flesh for Bankruptcy Pressure”
Tag: delaware
iHeartMedia Dodges Bankruptcy, Option Remains
iHeartMedia’s lawyers are probably very happy to see May in their rearview mirrors, after dodging a bullet in a Texas courtroom last week. A friendly judge barred the company’s creditors from seeking notices of default on some $6 billion of iHeart’s $21 billion in corporate debt, racked up primarily from pillaging the radio industry over the last 20 years.
iHeart’s creditors were attempting to call out the company for constructing a shell game in an attempt to keep its debt from crushing it. They noticed last year that the company had begun transferring hundreds of millions of dollars in assets to two “independent” subsidiaries named Broader Media and CC Finco. In simple terms, having already borrowed tens of billions against hundreds of stations, thousands of billboards, and countless other media ventures, iHeart moved some of those assets to “new” corporate parents, thereby creating “new” value against which to borrow even more money. Even better, this shuffle protected those assets against existing debt claims. Continue reading “iHeartMedia Dodges Bankruptcy, Option Remains”
Patent Troll Suffers Setback in HD Lawsuits
A judge in Delaware’s federal District Court has put the brakes on a patent troll’s carpetbombing of the radio industry. For those just tuning in, some ambiguous firms in Delaware acquired some old AT&T patents that vaguely describe digital data transmission. Armed with these, the firms filed a slew of lawsuits in 2013 against broadcasters who’ve deployed HD Radio technology, claiminng that the system infringes on their intellectual property.
iBiquity Digital Corporation, HD’s proprietor, filed a counterclaim last year seeking the dismissal of the trolls’ crusade and the voiding of its patent claims. If the trolls want to bilk anybody, iBiquity is the logical target, as it controls all of its intellectual property with a firm hand. Furthermore, the station’s license agreement with broadcasters indemnifies stations against such claims. Continue reading “Patent Troll Suffers Setback in HD Lawsuits”