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Radio giant iHeartMedia files for bankruptcy

Radio giant iHeartMedia files for bankruptcy

iHeartMedia - the parent company that operates iHeartRadio and iHeartCommunications - said Wednesday it's agreed to cut more than $10 billion worth of debt by filing for corporate bankruptcy. According to the statement, the company says it has enough cash on hand to fund and support the business as it moves through bankruptcy proceedings.

The company was acquired by private equity firms Thomas H. Lee Partners and Bain Capital Partners in an $18 billion leveraged buyout that ultimately saw debt totaling about $20 billion.

Equity stakes had been a key sticking point in recent talks, with creditors demanding nearly all of iHeart and 100 percent of its healthy Clear Channel unit.

The Denver-area stations owned by iHeartMedia are Channel 93.3 (KTCL), 95.7 The Party (KPTT), 97.3 KBCO, 103.5 The Fox (KRFX), KOA Newsradio (at 850 AM and 94.1 FM), 107.9 KBPI, 630 KHOW, Orange and Blue 760 (KDSP) and 106.7 The Bull (KWBL). It also owns iHeartRadio's music streaming service, a popular concert business, and a majority stake in Clear Channel Outdoor. "Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia's position as America's #1 audio company". The creditors' counteroffer sought a higher stake in the company - 94.75% - while offering the equity holders nothing.

Stokes pleads not guilty, faces August trial
The said incident happened in September which allegedly left a 27-year-old injured - a fractured eye socket. He will, however, be able to play for Rajasthan Royals in the Indian Premier League in April and May.


That's why iHeart has been negotiating with creditors and investors for months. The heavy debt on its balance sheet became a constant struggle for the company to withstand as its owners wheeled and dealed to continue refinance debt in order to lower interest payments down through the years.

IHeart's traditional businesses - the radio stations and the Clear Channel Outdoor billboard unit - still contribute the bulk of its revenue.

The bankruptcy filing comes as Spotify prepares for its much anticipated $1 billion listing on the New York Stock Exchange. After bankruptcy, its capital structure will include $5.7 billion in new secured debt and a new asset-backed loan. The current attempt at an accord followed at least a dozen debt revisions over the past decade.


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