iHeartMedia Triggers 30 Day Clock On Restructuring Or Bankruptcy

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  • #22333
    ZLoth
    ZLoth
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    You know that I can’t resist posting about everybuddy’s fffaaavvvooorrrriiiitttteeee mega-radio assimilating conglomeration.

    From RadioInsight:

    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.

    FULL ARTICLE HERE


    “You can not operate in this room unless you believe that you are Superman, and whatever happens, you’re capable of solving the problem.” – Gene Kranz

    #22334
    Earl
    Earl
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    iHeartLivingEntirelyOnDebt

    #22634
    ZLoth
    ZLoth
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    iHeartMedia files for bankruptcy


    “You can not operate in this room unless you believe that you are Superman, and whatever happens, you’re capable of solving the problem.” – Gene Kranz

    #22639
    Earl
    Earl
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    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?

    #22641
    ZLoth
    ZLoth
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    Right now, it’s a debt restructuring.


    “You can not operate in this room unless you believe that you are Superman, and whatever happens, you’re capable of solving the problem.” – Gene Kranz

    #22699
    ZLoth
    ZLoth
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    From Forbes:

    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.

    FULL ARTICLE HERE


    “You can not operate in this room unless you believe that you are Superman, and whatever happens, you’re capable of solving the problem.” – Gene Kranz

    #22700
    Earl
    Earl
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    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.

    #23037
    ubikuberalles
    ubikuberalles
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    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:

    Liberty Media Still Interested In iHeartMedia At The Right Price

    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.

    #23038
    Earl
    Earl
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    I’m sure the air talent is forbidden from mentioning the proceedings on pain of death being paid even less than they already are.

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