SA-based radio giant iHeartMedia files for bankruptcy

16 March, 2018, 01:03 | Author: Miranda Cannon
  • Clear Channel set to end limbo after parent iHeartMedia files for Chapter 11

iHeartMedia have reportedly agreed a restructuring deal with investors which hold over $10 billion of the debt to reduce their outstanding bills by half.

The company, owned by Thomas H. Lee Partners and Bain Capital, has been in negotiations for almost a year with its primary debtholders, led by Franklin Resources Group.

IHeartRadio operates some 850 radio stations nationwide, including Z100 in NY, seven stations in Albany, six in Binghamton, seven in Poughkeepsie, seven in Rochester, and five in Syracuse.

The broadcaster and some of its subsidiaries filed for Chapter 11 bankruptcy relief in U.S. District Court. "We're here to right-size the balance sheet".

IHeartMedia, which is based in San Antonio, had warned in 2016 that it had reached an impasse with lenders.

iHeartMedia believes that its cash on hand, together with cash generated from ongoing operations, will be sufficient to fund and support the business during the Chapter 11 proceedings.


The company owns 858 radio stations throughout 150 cities in the United States. It also produces syndicated radio programs that feature "American Idol" host Ryan Seacrest and political personalities Rush Limbaugh and Sean Hannity. The company earned $20 billion in debt from an invested buyout at now illegal loan rates in 2008 and late repayments this year put them on the brink of bankruptcy. And both companies are trying to restructure their debt.

Though iHeartMedia has a large online presence and its iHeartRadio app is popular for streaming music, it faces stiff competition from Spotify, Apple Music and other online streaming services.

iHeartMedia chief Bob Pittman also sounds optimistic, since this means the company "only" has another $10 billion in debt to worry about.

Existing shareholders would receive 1 percent of the stock in the reorganized company, according to court documents.

The two cases are unique, but both companies face similar challenges in a troubled industry. They have now confirmed they are filing for Chapter 11 bankruptcy.

Among the company's creditors is billionaire John Malone's Liberty Media, which controls satellite radio giant SiriusXM.

Recommended:



Popular

PSG concerned over Neymar future
Meanwhile, the 26-year-old is now injured, and continues to undergo his recovery back in Brazil. However, journalists were told that they could not ask about the Real Madrid rumours.

Bills have 'some interest' in QB Sam Bradford — NFL free agency
His one-year deal is worth up to $20 million, including $15 million guaranteed and an additional one-year option for $20 million. They have two now, but the biggest piece of the puzzle is yet to come in the NFL Draft in Arlington, Texas, April 26-28.

Malcolm Butler is off the market after choosing Titans over Lions
Butler went from Super Bowl hero in the XLIX victory to goat - of sorts - in the LII loss to the Philadelphia Eagles . Ryan wrote on Twitter earlier Tuesday that he was working the phones recruiting free agents to Tennessee.

Serena Williams Wins First Comeback Match 14 Months After Welcoming Daughter
Bertens would rue her missed opportunities, especially after several unforced errors which saw Williams take a commanding lead. The second was equally hard fought, the duo trading two breaks each before Williams got a third crucial break at 5-5.

President Trump visits border wall prototypes
Trump's visit comes after Attorney General Jeff Sessions last week sued California over three of its so-called sanctuary laws. Obama EPA chief: Reg rollback won't stand MORE announced the lawsuit during a visit to Sacramento last week.

Elements in Taliban open to peace talks: Mattis
Mattis said he had seen some positive indications from Islamabad, noting some Pakistani military operations along the border. These and other moves boosted the number of USA troops in Afghanistan by at least 3,500, to a total of more than 14,000.

Fernandinho: City won't ease up until the title is won
City now know victory in their next two Premier League games will be enough for them to be crowned Premier League champions. The Belgium defender, 31, said: "I'm really pleased with the game management and that's something you've seen this season".

Abe apologizes for document alterations
Abe quickly apologized Monday on behalf of ministry officials but did not mention his wife or her suspected role in the scandal. Abe said he wanted Aso to make every effort to clarify all the facts and ensure such acts were not repeated.

US Secretary Of State, Tillerson Cancels Visit To Nigeria?
He said the United States later this month would prepare a report on Chad's progress that Trump would review in April. Tillerson who visited the capital N'Djamena on Monday described Chad as an "important partner" in counter terrorism.

Venus beats Serena at Indian Wells
In other women's third round matches on Monday, French seventh seed Caroline Garcia defeated Australia's Daria Gavrilova 7-5, 6-4. The sisters have often said the other tennis playing sibling is their toughest opponent. "It never crossed my mind, " Venus said.