The agreement allows iHeartRadio to address more than $20 billion in debt and marks a "significant accomplishment" for the company, whose products and services are available on more than 200 platforms and spans nearly 850 radio stations, Chairman and CEO Bob Pittman said in a statement.
Billboard reports the nation's largest radio broadcaster filed for bankruptcy late on Wednesday due to $20 billion in debt and falling revenues. "There's no reason to file for bankruptcy until you have to... but we're at that point". "Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia's position as America's No. 1 audio company.iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters".
While the San Antonio-based company bills itself as a multi-platform media company, it is best known for operating about 850 radio stations across the United States. The creditors' counteroffer sought a higher stake in the company - 94.75% - while offering the equity holders nothing. The more than six months long negotiations between the company and its creditors evolved into this pre-packaged Chapter 11 filing. JCDecaux SA, the world's biggest outdoor-advertising agency, also has expressed interest in buying some of Clear Channel's assets. However, Clear Channel Outdoor Holdings, Inc. and its subsidiaries did not go into Chapter 11 proceedings, according to the release.
This filing comes following a proposal February 26 by Liberty Media Corp's John Malone of buying 40% in the restructured iHeartMedia group at a price of $1.16 billion. The deadline was extended more than 20 times as negotiators exchanged proposals and iHeart sweetened the terms.