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iHeartMedia Inc. won its fight against a group of senior lenders who were threatening to tip the media giant into bankruptcy unless the company rolled back a $500 million asset shift, Bloomberg News reported yesterday. A judge in San Antonio, Texas, ruled yesterday that iHeart was within its rights to transfer shares of its outdoor advertising unit beyond the creditors’ reach. The judge agreed with iHeart’s claim the move was designed to boost profitability by letting it buy back a chunk of its debt at a discount. “IHeart is not in default” and didn’t violate the terms of its loan covenants, Texas State Judge Cathleen Stryker said in the four-page ruling. She issued an order permanently blocking the dissident lenders, or anyone acting with or for them, from “issuing or threatening to issue” default notices or accelerating iHeart’s debt because of the stock reallocation. More than a dozen creditors, including multiple hedge funds, were poised to issue notices of default on at least 25 percent of the outstanding principal of four priority guarantee notes at the company, formerly known as Clear Channel Communications.

Aeropostale Inc. shareholder Aria Partners GP says claims against lender Sycamore Partners could be the best shot backers of the retailer have to make good their losses, the Wall Street Journal reported today. Sycamore and Aeropostale have been trading accusations over who is to blame for Aeropostale’s bankruptcy, a dispute that has dominated the chapter 11 case that began May 4. Swamped with hundreds of millions of dollars in debt, Aeropostale has said that it would trim down and survive chapter 11 bankruptcy, despite the market forces arrayed against it. Mall traffic is down, competition from faster fast-fashion rivals like H&M is up, and Aeropostale is struggling to pay store lease costs that run about $200 million annually. If a turnaround is out of the question, Aeropostale hopes to find a buyer for the apparel chain that, as of the end of January, numbered 811 stores. More than 150 of those outlets are slated for closure and more may follow.

Caesars Entertainment Corp. has offered $4 billion in a new plan to help its casino operating unit emerge from chapter 11, a lawyer for the unit told a bankruptcy judge yesterday, Reuters reported. Under the new plan, creditors will receive a bigger payout than under an initial framework restructuring agreement, which included a contribution from the Caesars Entertainment parent worth $1.5 billion. The initial agreement was widely opposed by creditors of the bankrupt unit, who are owed a collective $18.4 billion. They alleged that the parent, Caesars Entertainment, stripped away many of the best casinos and resorts and put them beyond the reach of the operating unit's creditors, something the parent has denied. "In terms of recoveries to creditors, they are substantially improved down the line" under the new plan, lawyer David Seligman said yesterday in bankruptcy court on behalf of the Caesars unit. Under Wednesday's proposal, once Caesars Entertainment completes its previously announced merger with its affiliate, Caesars Acquisition Co., the combined company will issue $1 billion of convertible notes to the operating unit's creditors. Creditors will also receive up to 47.5 percent of the common stock in the post-merger Caesars Entertainment and cash, valuing the entire contribution from the parent at $4 billion.