Clear Channel Communications

Clear Channel Communications - Billionaires in Distress - Gee that is too bad that this Big Bullies gobbling up small radio EVERYWHERE is having to Negotiate Billions in Debt.. wa wa.. makes ya feel sorry for them..

"Clear Channel Still Negotiating With Lenders
June 8, 2009
Thomas H. Lee Partners and Bain Capital - the private equity firms that own Clear Channel Communications - are confident that they will win a stand-off with lenders over a possible exchange of debt that would find the company's outdoor division paying off $2.5 billion in debt to the parent company. Some of the senior creditors that helped finance the purchase of Clear Channel have said they will turn down the debt exchange in the hope that CC will breach its lending agreements and give them control of the group's equity at a steep discount.

However, the new head of the company's international business, William Eccleshare, told the Financial Times that he believes a solution can be reached and the company is not looking to sell the international outdoor advertising business that he has been appointed to run."I've clearly done my due diligence and I believe it's a very sound situation," Eccleshare said, after he was appointed on Thursday. "I've had a lot of conversations with the private equity partners and I genuinely believe my appointment reflects their commitment and confidence in this business."

A filing by CC last week stated that the company expected to be in compliance with covenants under its senior secured credit facilities in 2009, but admitted to "significant uncertainty" about its results. The filing showed a 22.8 percent drop in first-quarter revenues and a $418 million loss in the period, according to the FT. However, Eccleshare said the group's biggest growth opportunity is in the international division and they will look to expand in markets where CC has been weak. "I think we have an opportunity to gain share of the advertising cake when the market picks up," he told FT."

Link To Source

http://www.fmqb.com/article.asp?id=1360983