iHeartMedia files for Chapter 11 bankruptcy protection

[Shawn Knight]

Radio conglomerate iHeartMedia has filed for Chapter 11 bankruptcy protection after reaching an agreement in principle with investors regarding a balance sheet restructuring of more than $10 billion in outstanding debt, around half of the more than $20 billion in debt that has burdened the company’s capital structure.

The proceedings, filed in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, do not include Clear Channel Outdoor Holdings or its subsidiaries. iHeartMedia said it will maintain day-to-day operations as usual and believes it has enough cash on hand – along with money it will generate from ongoing operations – to support the business through the bankruptcy proceedings.

The San Antonio-based company is the largest radio station group owner in the US, overseeing more than 850 terrestrial radio stations.

iHeart found itself under a mountain of debt following a leveraged buyout of Clear Channel Outdoor in 2008. As The Wall Street Journal recounts, the $26.7 billion deal was troubled almost from the start and things haven’t improved much as of late. Over the past five years, the company has spent more on debt payments than it has earned.

As demonstrated here and with the recent Toys “R” Us news, debt isn’t your friend.

The restructuring comes just days after the 2018 iHeartRadio Music Awards. That event, held at The Forum in Inglewood, California, over the weekend, brought out some of the biggest names in the music industry.

Image courtesy MBM Contracting

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[mbrowne5061]

Honestly, I hope they collapse - not that I wish ill on their employees, but that they have been the worst thing to happen to radio. Your favorite station suddenly change format? All of the stations in your city sound exactly the same? Most likely, iHeartRadio is the company behind it.

 

[p51d007]

I "grew up" in the days where ALL media was LOCAL. Local TV, Radio, newspapers.
Now, they are pretty much GONE. I know our newspaper, is owned by Gannett (USA Today).
Our radio stations are (were) owned by iHeart or Clear channel. Our tv stations owned by
some other corporate company, that ran off all of the local talent, and hired a bunch of kids
that can barely talk. It's sad when (I've since stopped watching them) they try to pronounce
a town, street, or person that has been here since the horse & buggy days, or appear to smeark
or laugh at some long time event because they are NOT LOCAL. They are outsiders, climbing the
corporate ladder, and have to be in "hickville" to do it.
The radio stations, programmed on the east coast obviously, think a one size fits all approach,
works. Along with that, they appear to think some artists, only have 3-4 songs in their catalog
because they play them over and over and over.
I've kind of stopped watching, listening to, or reading the so called "local" media, because it has
long since STOPPED being local.