This objection isn’t about the recent $2.2 billion in new debt that Clear Channel Outdoor took on to send nearly $2 billion of it to its parent company and 89% shareholder, Clear Channel Communications. Rather, the objection by JHL Capital Group pertains to previous cash transfers totaling $656 million at the end of 2011.
The objection, reported late Tuesday (3/6) by the Wall Street Journal, was communicated some months ago. The story said a special committee of Clear Channel Outdoor’s independent directors was formed in December to review the issues raised by JHL. The WSJ said the review is nearly complete.
The hedge fund claims the financially healthy outdoor company received no benefit from loaning money to the debt-laden parent company at a lower rate than CC Communications is paying for other debt.