February 1, 2018 at 6:15 pm #22333
You know that I can’t resist posting about everybuddy’s fffaaavvvooorrrriiiitttteeee mega-radio assimilating conglomeration.
iHeartMedia Triggers 30 Day Clock On Restructuring Or Bankruptcy
Similar to what Cumulus Media did prior to filing for bankruptcy, iHeartMedia subsidiary iHeartCommunications has elected to not make a $106 million interest payment due today.
The move triggers a 30 day grace period upon which iHeart can make the payment and not come into default, however it was done to force a deadline with its lenders to come to a restructuring agreement. iHeart now has until March 3 to come to a restructuring agreement with its debt holders to push back upcoming payments or eliminate as much of its $20 Billion in debt as possible. Otherwise the company will be in default and lenders can begin seizing collateral or assets to recoup the money owed. That would lead to iHeart filing for Chapter 11 bankruptcy just as Cumulus Media did in November as part of a deal with many of its lenders to convert their debt into equity in the restructured company.
“We’ve never lost an American in space, we’re sure as hell not gonna lose one on my watch! Failure is not an option.” – Gene KranzFebruary 2, 2018 at 3:25 am #22334
iHeartLivingEntirelyOnDebtMarch 15, 2018 at 9:08 am #22634
“We’ve never lost an American in space, we’re sure as hell not gonna lose one on my watch! Failure is not an option.” – Gene KranzMarch 15, 2018 at 11:20 am #22639
So here comes the alarming question. Do the stations get broken up/sold off to smaller ownership groups, restarting the cycle…
…or do they just go dark?March 15, 2018 at 8:59 pm #22641
Right now, it’s a debt restructuring.
“We’ve never lost an American in space, we’re sure as hell not gonna lose one on my watch! Failure is not an option.” – Gene KranzMarch 23, 2018 at 5:56 am #22699
In The IHeartMedia Bankruptcy, Expect A Major Selloff Of Radio Stations
The deal was struck in just the nick of time, hours before the radio giant was set to be shut down by its creditors, and it could well save iHeartMedia, allowing it to be reborn and thrive again.
But be assured, the iHeartMedia that emerges from the prearranged bankruptcy worked out last week with creditors will be a very different company—and a lot leaner.
Expect to see a dramatic shedding of radio stations, likely hundreds, many at rock-bottom prices.
Never mind statements put out by the company that stations will not be sold off. That’s intended to quell fears among employees and stem any flood of talent.
A station selloff is all but assured for a variety of reasons.
March 23, 2018 at 10:24 am #22700
Soooooo…once sold, do the stations wind up with smaller ownership groups, restarting the cycle…or do they just go dark?
My gut feeling is the latter. We are looking at the twilight of over-the-air radio in America. Because there’s almost no way to make it profitable now.May 9, 2018 at 1:27 pm #23037
So, I guess they did go bankrupt back in March (I haven’t been paying attention) but it looks like there is at least one buyer interested:
I listen to an iHeart station every time I’m in my car and sometimes at home (100.3 ThePeak if anyone cares) and they never mentioned the bankruptcy (probably not allowed). In fact, the normal operations of the radio station has not changed any: they still have the same contests, no change in the online personalities, same limited playlist, etc. If it wasn’t for this forum thread, I would have been totally clueless about the bankruptcy.May 9, 2018 at 2:35 pm #23038
I’m sure the air talent is forbidden from mentioning the proceedings on pain of
deathbeing paid even less than they already are.
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