https://www.democraticunderground.com/10142014087
iHeartMedia Files for Bankruptcy
March 14, 2018 11:16PM PT
iHeartMedia, the debt-burdened radio conglomerate, bowed to the inevitable late on Wednesday (March 14) and filed for Chapter 11 bankruptcy protection. In a statement, the company said it had reached an agreement with the holders of more than $10 billion of its debt.
“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.”
iHeart, formerly known as Clear Channel, is the nation’s largest radio company, with more than 850 stations. It also owns iHeartRadio’s music streaming service, a large concert business, and a 90% stake in Clear Channel Outdoor, the billboard company. Clear Channel Outdoor did not file for bankruptcy. For years, the company has been saddled with $20 billion in debt, the legacy of a leveraged buyout in 2008.
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The company, owned by Thomas H. Lee Partners and Bain Capital, has been in negotiations for nearly a year with its primary debtholders, led by Franklin Resources Group. Under the agreement detailed in an SEC filing, the debtholders will take control of more than 91 percent of the equity in the reorganized company, while Bain and Thomas H. Lee will keep just 1 percent. In term sheets released previously, the equity holders had offered creditors 89.5 percent of the equity, and proposed to keep 5.25 percent of the company. The creditors’ counteroffer sought a higher stake in the company — 94.75 percent — while offering the equity holders nothing.
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http://variety.com/2018/biz/news/iheartmedia-chapter-11-bankruptcy-1202715566/
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