You are here

Largest Radio Company in the U.S. Filing for Bankruptcy

Share:

iHeartMedia petitioned for Chapter 11 liquidation on Thursday. The biggest U.S. radio station proprietor came to a fundamental level concurrence with creditors to rebuild its mind-boggling debt stack. The organization, which petitioned for insolvency alongside some of its units, said it achieved the concurrence with holders of more than $20 billion of its remarkable obligation for a balance sheet restructuring, which would decrease its obligation by more than $10 billion.

“The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure,” CEO Bob Pittman said in a statement. “Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”

iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters. “We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers.”

The filing comes after John Malone’s Liberty Media proposed on February 26 an arrangement to purchase a 40 percent stake in a rebuilt iHeartMedia for $1.16 billion, joining the organization with Liberty’s Sirius XM Holdings satellite radio administration. Clear Channel Outdoor, a subsidiary of iHeartMedia, and one of the world’s biggest billboard organizations, did not start Chapter 11 procedures.

iHeartMedia skirted a $106 million interest installment on Feb. 1, setting off a 30-day beauty period amid which the organization has endeavored to pound out an arrangement with it bondholders. The organization unveiled on Monday it was all the while trading recommendations with its creditors, yet still couldn’t seem to achieve an understanding. Its latest proposition would have given holders of secured credits, who are owed almost $13 billion, about $5.6 billion in new obligation and 94 percent of the value in a revamped iHeartMedia. These creditors additionally would have gotten iHeartMedia’s 89.5 percent stake in Clear Channel Outdoor Holdings.

Among the music organizations recorded as creditors on the iHeart docket are Nielsen (owed $20 million); SoundExchange ($6.4 million); Warner Music Group ($3.9 million); Universal Music Group ($1.3 million); and Spotify ($2.1 million). Execution rights associations ASCAP and BMI are each owed around $1.4 million while Global Music Rights is taking a look at a $2 million obligation.


Share:
Kashish Ambekar
Kashish Ambekar
Kashish moved to the United Arab Emirates from London after he graduated from UEL with a Masters of Business Administration specializing in Finance. Money smelled good, although tipping in rubies was a fortune in Dubai, which he couldn’t afford, let alone implement. India happened naturally by birth and the ever developing market proved no bounds in almost every Industry. The art of writing came naturally to him, short stories to professional articles in lieu of being therapeutic once, to a full time content writer. Currently he freelances as a content writer and is extremely devoted as his thoughts have found a way to be penned for technology in support to TechFunnel.com.

Similar Articles

Leave a Reply

Top
Want to stay up-to-date with news and information from TechFunnel.com?

Subscribe Now