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IHeart Investors Lose Texas Appeal Over $516M Stock Move

Law360, New York (October 13, 2017, 5:09 PM EDT) -- Media company iHeart Communications Inc. didn’t violate contracts with investment funds that lent it billions when it transferred $516 million in stock from one subsidiary to another, a Texas appellate panel ruled Wednesday, finding those contracts didn’t require the transfers to have a profit motive.

Wednesday’s opinion affirming a bench trial decision puts to bed an appeal by Franklin Advisers Inc. and Oz Management LP, which manage investment funds that own large portions of iHeart’s debt and accused the media company of shifting the shares in...
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