iHeartMedia Inc (OTCMKTS:IHRT) has filed for Chapter 11 bankruptcy protection.
Here are a few things for listeners to know about the iHeartMedia bankruptcy.
- iHeartMedia and several of its subsidiaries voluntarily filed for bankruptcy.
- The bankruptcy does not affect Clear Channel Outdoor Holdings, Inc. and its subsidiaries.
- The company’s bankruptcy was filed in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
- It plans to use the bankruptcy to restructure its business.
- The company will also continue to operate as normal during the bankruptcy.
- iHeartMedia says that it has enough cash on hand and will make enough from operations to keep going throughout the bankruptcy.
- According to the company, this process will allow it to reduce its debt by more than $10 billion.
- The company says that it has reached an agreement in principle with holders of the debt for the bankruptcy.
- It is expecting the transition into bankruptcy to go smoothly once it gets approval from the court for its initial motions.
“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,” Bob Pittman, Chairman and CEO of iHeartMedia, said in a statement. “Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”
You can follow this link to learn more about the iHeartMedia bankruptcy and the company’s plans for the future.
IHRT stock was up 29% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
