Tag Archives: iHeart Media

At $20 billion in debt, iHeartMedia files for bankruptcy

(Source: NPR)

The “substantial doubt” that iHeartMedia’s corporate leaders expressed around the company’s likelihood of surviving another year, mentioned in its quarterly financial report last November, has been put to rest.

iHeartMedia, the country’s largest radio broadcaster with around 850 stations and a leading outdoor advertising company, is filing for bankruptcy after spending years trying to manage its $20 billion in outstanding indebtedness. (For some context, per that November statement, iHeartMedia was obligated to pay $1.8 billion in interest over that coming year.)

The company writes in a press release that it has reached “an agreement in principle with holders of more than $10 billion of its outstanding debt and its financial sponsors” that will essentially cut its debt in half, and that it has filed motions with the court to be allowed to operate normally through the restructuring. The bankruptcy follows, by two months, the bankruptcy of the country’s second-largest radio company, Cumulus, which offloaded $1 billion in debt.[…]

Read the full story at NPR.

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iHeart “Prepares for Bankruptcy”

(Source: Bloomberg via Dave Zantow)

IHeart Prepares for Bankruptcy as Soon as This Weekend

Embattled IHeartMedia Inc. is circulating documents for a bankruptcy filing that could come as soon as this weekend for the biggest U.S. radio broadcaster.

Advisers to some of iHeart’s senior creditors have been shown bankruptcy papers that would be used on the first day of court proceedings, according to people with knowledge of the matter. Despite a year of negotiations on a restructuring plan, a formal support agreement still isn’t in place with the most-senior lenders, and the creditors aren’t in restricted talks with the company, said the people, who asked not to be identified discussing private negotiations. Creditors typically agree to restrict some of their activities in exchange for non-public information when talks heat up.

A bankruptcy filing is all but certain, with iHeart and creditors each swapping proposals in recent weeks for a consensual restructuring. But pressure is mounting on iHeart after it missed a Feb. 1 interest payment, with a 30-day grace period about to run out. On top of that, the broadcaster on Thursday skipped payments on two more sets of bonds. If the company files without a pre-negotiated restructuring plan in place, the bankruptcy could turn into a free-fall, with some of the biggest and most contentious specialists in distressed companies potentially tussling for years over about $20 billion of debt.[…]

Continue reading at Bloomberg…

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iHeartMedia may collapse under debt

iHeartMedia(Source: MediaFire)

At first glance, iHeartMedia looks like the model 21st century media conglomerate, truly a colossus with interests across media: owner of 858 radio stations; Clear Channel Outdoor, one of the world’s largest outdoor companies; Premier Networks, the top U.S. radio network; and iHeartRadio, among the nation’s top digital music services.

The radio giant has a dynamic leader, Bob Pittman, the man who created MTV and widely regarded as one of the most charismatic men in media.

And it has glam, lots of glam. Look no further than the iHeartRadio Music Festival and other live events that draw thousands upon thousands of celebrants and endless media excitement.

But for all that glam, iHeart is a deeply troubled company. In fact, iHeartMedia is teetering on collapse. It’s not a question of whether it collapses but when, and it’s likely to come sooner rather than later. It could be within months.

What’s going to sink iHeart is its huge debt, some $21 billion. That’s more than the entire radio industry generates in ad dollars in a given year, and it’s a debt iHeart appears to have zero prospects of paying off.[…]

iHeart’s ills could not come at a worse time for radio.

Cumulus, the No. 2 radio company, is struggling to work through its own debt problems and could itself slide into bankruptcy. And CBS Radio was just put on the block in what’s seen as a major vote of no confidence in radio’s future by CBS Chairman Les Moonves.

One could well imagine a scenario in which all three companies are broken up and their stations all put on the market at one time, in what would prove a major disruption for the industry.[…]

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