https://www.foxbusiness.com/markets/iheartmedia-files-for-bankruptcy
iHeartMedia files for bankruptcy
Mike Obel, Matthew KazinPublished March 15, 2018
The owner of the nation's biggest radio station operator, iHeartMedia, filed
for bankruptcy protection from its creditors, the company announced early
Thursday morning.
The San Antonio-based company, which owns 856 stations and controls Clear
Channel Outdoor Holdings, one of the world's biggest billboard firms, said it
reached an agreement in principle for a balance sheet restructuring.
The deal, which has been filed with a bankruptcy court in Houston, was made
with holders of more than $10 billion of its outstanding debt and its financial
sponsors.
Clear Channel Outdoor and its subsidiaries have not applied for creditor
protection.
“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.
The news comes after Liberty Media Corp. proposed buying a 40% stake in a
restructured version of iHeartMedia for $1.16 billion on Feb. 26. Liberty,
controlled by John Malone, owns satellite radio service Sirius XM Holdings.
Earlier in February, iHeartMedia failed to make a $106 million bond payment,
and utilized a 30-day grace period to strike a deal with its bondholders.
Private equity firms Bain Capital Partners and Thomas H. Lee Partners purchased
the radio station and billboard giant – then Clear Channel – in 2008 for $17.9
billion. The two firms control about 68% of voting stock of iHeartMedia,
according to the company’s most recent annual filing with the Securities and
Exchange Commission.
The Pink Sheet stock closed at $0.48 on Wednesday and has fallen about 14.5%
this year.
