Clear Channel's financial woes continue

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: Clear Channel lenders balk : Last Updated: 9:45 AM, December 18, 2009 : Posted: 12:15 AM, December 18, 2009 : Clear Channel's effort to lighten its debt load hit a snag yesterday when a group of bondholders claimed a plan to raise $750 million in debt without their permission effectively put the company in default. : Not long after Clear Channel last week announced its plan to raise the debt, a group of senior lenders sent the radio and billboard giant a letter alleging that the capital-raising effort violated the terms of their loan agreement. : While Clear Channel in a filing yesterday said the claims had no merit, it also said it may raise its offer. : It's unclear which of the company's lenders cried foul. However, the company and its private-equity owners have been at war with a group of lenders, led by The Blackstone Group's GSO C's GSO Capital, that have sought to take over the company as it has struggled to pay down its debt. : Clear Channel was bought in July 2008 by THL Partners and Bain Capital in a $23 billion leveraged deal, and has had trouble reducing its debt load thanks to a collapsing advertising market. : Josh Kosman

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