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

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

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