IHeartMedia finally files for bankruptcy

IHeartMedia finally files for bankruptcy

IHeartMedia, previously known as Clear Channel Communications, has always been expected to file for bankruptcy as its $20 billion debt, mostly from a leveraged buyout in 2008, lingered.

The holding company of iHeartRadio Inc. is the biggest operator of radio stations in the U.S and Canada.

iHeartRadio has seen advertising revenues drop immensely to major tech companies.

iHeartMedia, Inc., which owns hundreds of radio stations around the country, including in Eau Claire, has filed for Chapter 11 bankruptcy. "Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia's position as America's number one audio company".

Under the company's debt-cutting deal, holders of secured loans and secured notes, who are owed almost $13 billion, agreed to accept about $5.6 billion in new debt and 94 percent of the equity in a reorganized iHeartMedia, according to court documents. As it filed for chapter eleven protection, it stated that it had "reached an agreement in principle with holders of more than $10 billion of its outstanding debt and its financial sponsors".

Day-to-day operations of its businesses, at least for now, are not expected to be dramatically affected. Although the company launched their own subscription service previous year, it has not yet found the same success as its competitors.

IHeart owns 12 radio stations in the Clevelan and Akron markets, according to its website.

The company operates 850 iHeart radio stations and more than 200 digital platforms that have attracted 130M social followers.

IHeartRadio operates some 850 radio stations nationwide, including Z100 in NY, seven stations in Albany, six in Binghamton, seven in Poughkeepsie, seven in Rochester, and five in Syracuse. The heavy debt on its balance sheet became a constant struggle for the company to withstand as its owners wheeled and dealed to continue refinance debt in order to lower interest payments down through the years. The Chapter 11 filing didn't include the billboard unit.

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