A lawsuit was filed by a current investor in NYSE:CCO shares over alleged breaches of fiduciary duties by certain Clear Channel Outdoor Holdings directors and other NYSE:CCO stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/12/2012 -- An investor in NYSE:CCO shares filed a lawsuit in State Court against directors of Clear Channel Outdoor Holdings, Inc. in connection with an alleged improper $656 million loan given from Clear Channel Outdoor Holdings, Inc. to Clear Channel Communications.
Investors who are a current long term stockholders in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
Clear Channel Communications Inc, and its owners private equity firms Bain Capital LLC and Thomas H Lee Partners LLC hold a majority interest in Clear Channel Outdoors Holdings. In fact, Clear Channel Communications, which was bought in 2008 by Bain Capital LLC and Thomas H Lee Partners LLC for $18billion, owns about 89% of Clear Channel Outdoors Holdings and four members of Clear Channel Outdoor Holdings’ board are employed by the two private equity firms.
The plaintiff claims that the board of directors of Clear Channel Outdoors Holdings Inc breached their fiduciary duties by agreeing that Clear Channel Outdoors Holdings loaned Channel Communications $654million at "incredibly favorable" terms to the detriment of public shareholders of Clear Channel Outdoors Holdings.
The plaintiff says that no rational third-party would have ever agreed to lend money on such terms and the loan has "so significantly" depleted Clear Channel Holdings’ cash reserves that it was forced to borrow $2 billion to fund a special dividend.
The plaintiff says that not only could Clear Channel Outdoors Holdings Inc earn twice as much interest on the loan if it charged Clear Channel Communications a commercially reasonably interest rate, but Clear Channel Outdoors Holdings faces a severe risk that the unsecured loan will never be paid back because Clear Channel Communications has been drowning under a massive debt load since its 2008 leveraged buyout.
Those who are current long term investors in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego