SAN ANTONIO–(BUSINESS WIRE)–Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) announced today that the Company will be delayed in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (the “Form 10-K”) beyond the extended deadline of April 2, 2018. As previously disclosed, the Company’s delay in filing the Form 10-K is due to the ongoing special investigation regarding the misappropriation of funds by employees of Clear Media Limited, an indirect, non-wholly-owned subsidiary of the Company whose ordinary shares are listed but suspended from trading on the Hong Kong Stock Exchange, and other matters discovered during the course of the special investigation. In light of the ongoing procedures being undertaken in connection with the special investigation, the Company was unable to file the Form 10-K by April 2, 2018. The Company will file the Form 10-K as soon as practicable.

As a result, the Company has received a notice from the New York Stock Exchange (the “NYSE”) that the Company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria. The NYSE informed the Company that, under the NYSE’s rules, the Company will have six months from April 3, 2018 to file the Form 10-K with the SEC. The Company can regain compliance with the NYSE listing standards before that date by filing the Form 10-K with the SEC.

On the radio side, rbr.com provides some additional insight into the comment on Clear Media Limited from iHeartMedia:

The holdup is “due to a delay in completion of the financial statements of Clear Media Ltd., an indirect non-wholly-owned subsidiary” of iHeart listed on the Hong Kong Stock Exchange.

As it understands, iHeart reports that “several” Clear Media employees are subject to an ongoing police investigation for misappropriation of funds. Clear Media is conducting additional procedures and processes, including a special investigation by forensic accountants and an external law firm appointed by Clear Media Ltd.’s board of directors and approved by the Audit Committee of Clear Channel Outdoor Holdings into the misappropriation of funds.

Under the New York Stock Exchange rules, Clear Channel Outdoor Holdings, Inc. will have six months from April 3, 2018 to file the Form 10-K with the SEC.

The delay by Clear Channel Outdoor Holdings, Inc.  creates the same delay for its parent company iHeartMedia, Inc.  who filed a Form NT 10-K on April 3rd.

Insider’s take – The last thing iHeartMedia needs is to be late on its reporting and potentially have another mess on its hands with a subsidiary.  So we wait and see what the investigation finds. Clear Media is a Hong Kong based outdoor media company.  Their web site indicates they are the largest bus shelter advertising panel operator in China and that Clear Channel Outdoor is their largest shareholder.