iHeartMedia radio files bankruptcy plan to reduce debt

SHARE iHeartMedia radio files bankruptcy plan to reduce debt
ap18074584938846.jpg

The San Antonio-based IHeartMedia, one of the world’s largest radio and billboard companies, has filed for Chapter 11 bankruptcy. | Richard Shotwell/Invision/AP, File

NEW YORK — IHeartMedia, one of the world’s largest radio companies, is seeking bankruptcy protection as part of an agreement with its lenders to reduce debt it took on to become a privately held company.

The company formerly known as Clear Channel Communications said Thursday that it will operate its businesses as usual while it restructures its finances under Chapter 11 protection to reduce debt by more than $10 billion.

IHeartMedia, which is based in San Antonio, operates 858 broadcast radio stations in more than 150 markets around the U.S. It also runs big live events such as the iHeartRadio Music awards.

Though iHeartMedia has a large online presence and its iHeartRadio app is popular for streaming music, it faces stiff competition from Spotify, Apple Music and other online streaming services.

Still, the reason for the company’s financial problems is primarily its massive debt, which it amassed when private equity firms Thomas H. Lee Partners and Bain Capital led a buyback of publicly held shares to take the company private in 2008. IHeartMedia had warned in 2016 that it had reached an impasse with lenders.

IHeartMedia Inc. said its billboard subsidiary, Clear Channel Outdoor, isn’t part of the bankruptcy proceedings.

Radio giant iHeartMedia files bankruptcy plan to reduce debt

NEW YORK (AP) — IHeartMedia, one of the world’s largest radio companies, is seeking bankruptcy protection as part of an agreement with its lenders to reduce debt it took on to become a privately held company.

The company formerly known as Clear Channel Communications said Thursday that it will operate its businesses as usual while it restructures its finances under Chapter 11 protection to reduce debt by more than $10 billion.

IHeartMedia, which is based in San Antonio, operates 858 broadcast radio stations in more than 150 markets around the U.S. It also runs big live events such as the iHeartRadio Music awards.

Though iHeartMedia has a large online presence and its iHeartRadio app is popular for streaming music, it faces stiff competition from Spotify, Apple Music and other online streaming services.

Still, the reason for the company’s financial problems is primarily its massive debt, which it amassed when private equity firms Thomas H. Lee Partners and Bain Capital led a buyback of publicly held shares to take the company private in 2008. IHeartMedia had warned in 2016 that it had reached an impasse with lenders.

IHeartMedia Inc. said its billboard subsidiary, Clear Channel Outdoor, isn’t part of the bankruptcy proceedings.

Associated Press

The Latest
The Bears should “absolutely” stick with quarterback Justin Fields, said Michael Vick, the quarterback whom he outgained on the ground in 2022 for the second-best rushing season ever at the position.
Parker cites how the Aces are run, owner Mark Davis’ support for women’s sports as reasons for her signing.
Chiefs quarterback Patrick Mahomes was shocked for two reasons when the Bears traded up to draft quarterback Mitch Trubisky second overall in 2017.
A 26-year-old man was shot and killed Tuesday afternoon in the 1600 block of East 78th Street, police said.
Laurel Jean Mitchell, 17, was found dead in the Elkhart River in Noble County in 1975. DNA evidence led police to arrest two men in connection with the death.