iHeartRadio Has Filed For Chapter 11 Bankruptcy

Forbes ^ | 03/15/18 | Hugh McIntyre

[Enlightened1]

fter months of delays, discussions and last-minute attempts to avoid an unfortunate financial necessity, the inevitable has finally happened to one of America’s biggest entertainment companies: iHeartRadio has filed for Chapter 11 bankruptcy.

The radio titan officially filed for protection late on Wednesday, ending speculation that has been swirling for months. The company has been suffering due to more than $20 billion in debt. That load, which has been crippling the entertainment giant for a decade now, is a result of a 2008 leveraged buyout that also saw the company rebrand into the conglomerate the world knows now.

iHeart announced the filing on its press page, stating that the company has “reached an agreement in principle with holders of more than $10 billion of its outstanding debt and its financial sponsors,” and that agreement will reduce its crippling debt by more than $10 billion, effectively cutting it in half. That could be a game-changer for the company, though it still has a long road ahead as the bankruptcy protection proceedings have only just started.

There have been rumors for months that bankruptcy was on its way, and lately, it seemed as if every week some new sign appeared that signaled it was coming sooner than later. The company missed its first interest payment just last month, which seemed to herald that bankruptcy was imminent, though there were plenty of reports about other companies stepping in to offer up cash, either in the form of some kind of loan or for a share of the iHeart empire.

iHeartRadio owns 850 radio stations across the U.S., including many of the most popular outlets in top-tier markets. In addition to ruling traditional radio, the company also runs one of the most popular streaming music platforms in the world...

[YogicCowboy]

Willard the Rat is licking his lips.