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A major player in the radio game has filed for bankruptcy.
IHeartMedia Inc. announced today that it’s reached an agreement in principle with holders of more than $10 billion of it’s outstanding debt and its financial sponsors.
There’s reportedly widespread support for a comprehensive restructuring of the balance sheet to reduce iHeartMedia’s debt by more than $10 billion.
In the meantime, it’ll be business as usual the company says.
“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,” explained Bob Pittman, CEO of iHeartMedia.
“Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”
iHeartMedia has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
The company has filed a series of customary motions seeking to maintain business-as-usual operations during this process, as well as uphold its commitments to its valued employees and stakeholders.
The stock chart for iHeartMedia doesn’t elude to a promising future, but the company says it believes its cash on hand, together with cash generated from ongoing operations, will be sufficient to fund and support the business during these proceedings.
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