iHeartRadio's Darren Davis Testifies Bankruptcy Threat Is 'Disrupting' Company's Business. The debt default trial underway in Texas pitting
iHeartCommunications against
Benefit Street Partners LLC is being covered by
Bloomberg's
Laura Brubaker Calkins. Yesterday's star witness for iHeart was iHeartRadio president
Darren Davis and in his testimony, he painted a picture of a company that was able to make its debt payments as it works to build a
global digital music service, that is, until the debt default was declared. Calkins reports that Davis said as it stands now, the company's line of credit has been reduced, its relationships with partners are strained, and it's affecting iHeart's ability to attract top, and in some cases, critical employees. The upshot is that the debt default issue is hampering the company's goal of building iHeartRadio into the global content service that it believes it can be. The case stems from iHeartCommunications' transfer of $500 million of Clear Channel Outdoor stock into the shell company Broader Media Inc. iHeart says the transfer was legal, and Benefit Street Partners LL says it was not. Read Calkins'
Bloomberg piece
here.
