IHeartMedia Says Business Will Continue During Debt Restructuring

Gladys Abbott
March 16, 2018

The company announced that it had reached agreements with creditors to reduce its debt by more than $10 billion.

The CEO of the company, Bob Pittman, said the debt iHeartMedia found itself in has "burdened our capital structure".

Pitman promised that "a capital structure that finally matches our impressive operating business will further enhance iHeartMedia's position as America's No. 1 audio company". On top of that, the company has struggled immensely with declining revenue. Other top-level iHeart executives, includes COO Richard Bressler and General Counsel Robert Walls, will also walk away with millions in bonuses.

iHeartMedia owns more than 850 radio stations across the country, including B-95, Z-100, 92.1, Moose Country 106.7, WMEQ-AM and 98.7 in Eau Claire.

Based in San Antonio, IHeartMedia operates 858 broadcast radio stations in more than 150 markets. That set up a 30-day "grace period" before triggering a default, which forced the company to declare bankruptcy.

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In a statement, the company said it was hoping to maintain business as usual during the bankruptcy. Day-to-day operations at the company, the stations it controls and its mobile app will continue, iHeartMedia announced.

"They're not shutting down".

"It all stems from the 2008 leveraged buyout by private equity firms Bain Capital Partners and Thomas Lee Partners", she says. Shareholders would have kept 5.25% of the company. This will unite iHeart Radio with Liberty's Sirius XM Holdings satellite radio service. The move reportedly would've created a unique synergy between iHeartMedia, Pandora, and SiriusXM. JCDecaux SA, the world's biggest outdoor-advertising agency, also has expressed interest in buying some of Clear Channel's assets. Spotify, which recently filed for an initial public offering, said Thursday that its shares would begin trading on the New York Stock Exchange around April 3.

Cumulus Media, iHeart's closest competitor, with 445 stations, declared bankruptcy four months ago.

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