Lawyers disagree over iHeart CDS trigger

Isda DC to consider whether non-payment of debt held by an affiliate is a failure-to-pay event

money-locked-up
Payment withheld: but was the action a failure-to-pay credit event

A move by a US media company to leave a portion of its bonds held by an affiliate outstanding on maturity has sparked debate around whether it should constitute a credit event.

On December 13, San Antonio-based iHeart Communications announced it would not repay a portion of its $250 million bond tranche due two days later. The company repaid $192 million on bonds held by outside investors, but withheld a payment of $57.1 million for notes held by a subsidiary, Clear Channel Holdings.

The measure

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: