On May 24, 5:02 pm, Booble wrote:
SIGNS OF TROUBLE FOR CLEAR CHANNEL
By JOSH KOSMAN and KAJA WHITEHOUSE

May 22, 2009 --
Clear Channel Communications' efforts to avert bankruptcy hit a patch
of static this week after two senior lenders opposed the company's
debt-swap proposal, sources told The Post.

Only nine months after private-equity firms THL Partners and Bain
Capital bought the radio and billboard giant in a $27 billion
leveraged buyout, the two firms this week reached out to Clear
Channel's largest senior lenders to propose a debt exchange and were
roundly rejected by at least two lenders, who sources said had little
interest in the proposal.

It represents a setback for Clear Channel, THL and Bain, which are
racing the clock to restructure the company's debt before the second
half of the year, when if things are unresolved the company could
violate terms in its loan agreements and thus trigger a bankruptcy.

According to sources familiar with the matter, senior lenders are
being offered in part an exchange of some of their $15 billion in debt
for $2.5 billion that is owed to the company from Clear Channel's
outdoor-advertising business.

In a bankruptcy, the money that the outdoor unit owes Clear Channel
would be shared equally among the senior lenders and bondholders, even
though senior lenders usually get priority. Had the lenders agreed to
Clear Channel's proposal, they would have gotten first claims on the
debt owed by the outdoor unit.

However, this week's rejection shows that the sides remain far apart
on reaching an agreement.

Clear Channel's owners believe the company has some flexibility around
its loan agreements, and in a worst-case scenario THL and Bain can
pump more money into the company to avoid bankruptcy.

Nevertheless, some lenders remain concerned.

One Clear Channel senior lender said that under its agreement, debt
could not be greater than 9.5 times the company's cash flow. And while
that ratio stands at 7.1, the worry is that with earnings and cash
flow falling fast, the ratio could swell to more than eight times cash
flow in the second quarter and blow past the 9.5 threshold by the end
of the year.

And the company's overall outlook isn't particularly bright. Research
firm CreditSights noted this week that Clear Channel's cash flow
tanked 47 percent in the first quarter, thanks to contracting
advertising revenue. The company has attempted to address the
situation by slashing talent at its local stations, relying more on
syndicated hosts like Ryan Seacrest, but CreditSights still believes
the company could break its loan terms later this year.

One lender noted that the Clear Channel loans he's holding have
increased in value recently, trading at around 54 cents on the dollar,
up from the high 40s range a few weeks ago, and he predicts they could
be worth close to par in a bankruptcy given Clear Channel's assets
have value.

As such, the lender said he might fare better forcing the company into
bankruptcy than accepting a debt swap.

http://www.nypost.com/php/pfriendly/...3A%2F%2Fwww.ny...

Let's see how easily Bain-Lee is conned, with authorizing tens-of-
millions more for the FM-HD power increase - LOL!

CC's toast. Can't wait to see them go bankrupt. Hope they take
iBiquity with them.