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.