iHeartMedia Files For Chapter 11 Bankruptcy

iHeartMedia has reached an agreement with the holders of more than $10 billion of its outstanding debt for a restructuring through the Chapter 11 bankruptcy process.

iHeart will continue to operate all of its properties while undergoing the restructuring that will reduce their debt by $10 billion. The restructuring will be overseen by the United States Bankruptcy Court for the Southern District of Texas, Houston Division. The company expects to have liquidity to continue operations during the bankruptcy proceedings.

Among the largest unsecured creditors owed by iHeart in trade payable or licensing fees are Nielsen who is owed $20,874,637.87, SoundExchange owed $6.4 million, Cumulus Media $5.6 million, Cox Media Group $5 million, Warner Music Group $3.9 million, CBS $2.82 million, Hubbard Broadcasting $2.3 million, and Spotify $2 million. Also unsecured is Law Debenture Trust Company’s $1.9 billion in 14% Senior Notes due in 2021 and BNY Mellon’s $309 million in 7.25% Senior Notes due in 2027 and $178 million in 6.875% Senior Notes due in 2018.

The Clear Channel Outdoor subsidiary will not be going through the bankruptcy process.

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